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LPLA vs SCHW
Which Stock Would AI Choose? LPL Financial Holdings (LPLA) vs. The Charles Schwab Corporation (SCHW) Stock Comparison
Key Takeaways
- LPLA is the largest independent broker-dealer in the U.S., while SCHW operates a much larger, vertically integrated brokerage, banking, and custody platform.
- Both stocks have pulled back roughly 10% year to date, yet each has reported earnings beats and record client-asset growth in recent quarters.
- Schwab recently posted record core net new assets of about $190 billion and raised its full-year revenue growth outlook, signaling strong retail-investor momentum.
- LPL Financial continues to add advisory teams and scale its Model Wealth Portfolios platform while working through the Commonwealth Financial Network integration.
- Market sentiment has been tempered for both names by concerns over "cash sorting" and AI's impact on interest-sensitive client-cash revenue.
- Relative valuation diverges sharply: SCHW trades at a materially lower price-to-earnings (P/E) multiple than LPLA, reflecting different growth and risk profiles.
Introduction
Wealth-management and brokerage stocks sit at the intersection of two powerful forces in 2026: a surge in retail investing activity and growing uncertainty over how artificial intelligence will reshape how client cash is managed. This stock comparison examines two prominent players with very different footprints. LPLA focuses on serving independent financial advisors, while SCHW combines a mass-market brokerage with banking and custody services. For traders and investors evaluating relative performance and market positioning within the financial sector, understanding these two business models—and how each has behaved in recent weeks—provides a useful framework for assessing risk and opportunity.
LPLA Overview and Recent Performance
LPLA, or LPL Financial Holdings, operates an integrated platform of brokerage and advisory services serving independent financial advisors and institutions across the United States. Its growth strategy leans heavily on advisor recruitment and mergers and acquisitions (M&A), including the ongoing integration of Commonwealth Financial Network, which is expected to run through 2027.
In recent market activity, LPLA shares have traded in the low-to-mid $300s, down roughly 10% year to date, with notable volatility across a 52-week range between roughly $260 and $400. The company has continued to announce new advisory-team wins, including firms overseeing about $1 billion and $1.1 billion in client assets, and disclosed that its Model Wealth Portfolios platform now exceeds $200 billion in assets. Management has also repurchased more than $440 million in shares during 2026 and expanded its buyback authorization to $2.5 billion. Despite these positives, sentiment has been tempered by execution risk around the Commonwealth integration, elevated recruitment costs, and concerns that clients may shift cash into higher-yielding alternatives—pressures that could weigh on interest-sensitive revenue.
SCHW Overview and Recent Performance
SCHW, The Charles Schwab Corporation, is one of the largest U.S. financial services firms, pairing a mass-market brokerage and advisory business with banking and custody operations serving tens of millions of accounts and trillions of dollars in client assets.
Schwab's most recent quarter showcased strong momentum: adjusted earnings per share (EPS) beat consensus estimates, revenue rose roughly 17% year over year, and the firm reported record core net new assets of about $190 billion alongside roughly 1.2 million new brokerage accounts. Total client assets grew about 15% to more than $13 trillion. Management also raised its full-year revenue growth outlook and has leaned into artificial intelligence with an assistant tool designed to deepen client engagement. Even so, SCHW shares have slipped roughly 10% year to date to the high-$80s, as investors weigh the "AI bear case" around renewed cash sorting and uncertainty about how quickly the company can convert surging client activity into durable fee and interest income. A dividend yield near 1.4% adds an income component to the story.
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Head-to-Head Comparison
The core contrast between these two stocks is business model. LPLA is an asset-light platform for independent advisors, generating revenue largely from advisory and brokerage fees tied to the roughly trillions of dollars it supports, with growth driven by recruitment and acquisitions. SCHW runs a capital-intensive model that layers banking, net interest income, and custody on top of its brokerage, giving it broader exposure to interest-rate dynamics.
On growth drivers, Schwab's record asset inflows and expanding engagement point to durable scale advantages, while LPL's advisor-recruitment pipeline and platform expansion offer a more targeted growth engine. On risk, both face the same sector-wide concern—cash sorting—but the impact differs: Schwab's large balance sheet makes net interest margin (NIM) and deposit trends a central variable, whereas LPL's exposure runs through cash-sweep revenue. Valuation also diverges meaningfully, with SCHW trading at a notably lower P/E multiple than LPLA. Momentum has been similarly weak for both in recent weeks, though analyst sentiment leans broadly constructive, with both names retaining Buy ratings from major firms even as price targets have been trimmed.
Tickeron AI Verdict
Based on observable trend consistency, relative stability, and near-term catalysts, Tickeron's AI would likely lean slightly toward SCHW in the current environment. The reasoning is probabilistic rather than definitive: Schwab's record asset inflows, raised revenue outlook, and relatively lower valuation suggest a more balanced risk-reward profile, with multiple analysts arguing the cash-sorting concerns are already reflected in the price. LPLA, by contrast, presents stronger long-term growth characteristics but carries near-term execution and integration uncertainty that could keep trend signals less consistent until those catalysts resolve. The AI's preference should be understood as a directional read on current market positioning, not a fixed prediction.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LPLA is a Buy and SCHW is a Buy.
LPLA's RSI Indicator ascends from oversold territory
The RSI Oscillator for LPLA moved out of oversold territory on October 01, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In 18 of the 20 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 56 cases where LPLA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for LPLA just turned positive on October 05, 2026. Looking at past instances where LPLA's MACD turned positive, the stock continued to rise in 31 of 43 cases over the following month. The odds of a continued upward trend are 72%.
Following a +1.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where LPLA advanced for three days, in 244 of 366 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
LPLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 19, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LPLA as a result. In 59 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 66%.
The 10-day moving average for LPLA crossed bearishly below the 50-day moving average on September 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LPLA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
The Aroon Indicator for LPLA entered a downward trend on October 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 37 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 48 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. LPLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.361) is normal, around the industry mean (3.532). P/E Ratio (25.488) is within average values for comparable stocks, (8.846). Projected Growth (PEG Ratio) (0.404) is also within normal values, averaging (0.809). Dividend Yield (0.004) settles around the average of (7.708) among similar stocks. P/S Ratio (1.364) is also within normal values, averaging (16.763).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
SCHW's Stochastic Oscillator sits in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SCHW's RSI Indicator exited the oversold zone, 24 of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
Following a +2.30% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHW advanced for three days, in 185 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
SCHW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SCHW turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 24 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 50%.
SCHW moved below its 50-day moving average on September 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SCHW crossed bearishly below the 50-day moving average on September 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for SCHW entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 5 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating steady price growth. SCHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 69 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SCHW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 71 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.599) is normal, around the industry mean (3.532). P/E Ratio (16.565) is within average values for comparable stocks, (8.846). Projected Growth (PEG Ratio) (0.832) is also within normal values, averaging (0.809). Dividend Yield (0.014) settles around the average of (7.708) among similar stocks. P/S Ratio (7.148) is also within normal values, averaging (16.763).
LPLA | SCHW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 84 | 62 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 80 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 37 | 69 | |
SMR RATING 1..100 | 48 | 5 | |
PRICE GROWTH RATING 1..100 | 57 | 61 | |
P/E GROWTH RATING 1..100 | 29 | 71 | |
SEASONALITY SCORE 1..100 | 85 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LPLA's Valuation (80) in the Investment Banks Or Brokers industry is in the same range as SCHW (88). This means that LPLA’s stock grew similarly to SCHW’s over the last 12 months.
LPLA's Profit vs Risk Rating (37) in the Investment Banks Or Brokers industry is in the same range as SCHW (69). This means that LPLA’s stock grew similarly to SCHW’s over the last 12 months.
SCHW's SMR Rating (5) in the Investment Banks Or Brokers industry is somewhat better than the same rating for LPLA (48). This means that SCHW’s stock grew somewhat faster than LPLA’s over the last 12 months.
LPLA's Price Growth Rating (57) in the Investment Banks Or Brokers industry is in the same range as SCHW (61). This means that LPLA’s stock grew similarly to SCHW’s over the last 12 months.
LPLA's P/E Growth Rating (29) in the Investment Banks Or Brokers industry is somewhat better than the same rating for SCHW (71). This means that LPLA’s stock grew somewhat faster than SCHW’s over the last 12 months.
| LPLA | SCHW | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 71% |
| Stochastic ODDS (%) | 1 day ago 68% | 1 day ago 73% |
| Momentum ODDS (%) | 1 day ago 66% | N/A |
| MACD ODDS (%) | 1 day ago 72% | 1 day ago 50% |
| TrendWeek ODDS (%) | 1 day ago 65% | 1 day ago 60% |
| TrendMonth ODDS (%) | 1 day ago 68% | 1 day ago 62% |
| Advances ODDS (%) | 14 days ago 67% | 2 days ago 58% |
| Declines ODDS (%) | 1 day ago 65% | 4 days ago 59% |
| BollingerBands ODDS (%) | 1 day ago 80% | 1 day ago 71% |
| Aroon ODDS (%) | 1 day ago 59% | 1 day ago 60% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LPLA’s FA Score shows that 1 FA rating(s) are green while SCHW’s FA Score has 1 green FA rating(s).
- LPLA’s FA Score: 1 green, 4 red.
- SCHW’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LPLA’s TA Score shows that 5 TA indicator(s) are bullish while SCHW’s TA Score has 4 bullish TA indicator(s).
- LPLA’s TA Score: 5 bullish, 4 bearish.
- SCHW’s TA Score: 4 bullish, 5 bearish.
Price Growth
LPLA (@Investment Banks/Brokers) experienced а -2.66% price change this week, while SCHW (@Investment Banks/Brokers) price change was -2.89% for the same time period.
The average weekly price growth across all stocks in the @Investment Banks/Brokers industry was -5.38%. For the same industry, the average monthly price growth was -17.06%, and the average quarterly price growth was -13.36%.
Reported Earning Dates
LPLA is expected to report earnings on Oct 27, 2026.
SCHW is expected to report earnings on Jan 19, 2027.
Industries' Descriptions
@Investment Banks/Brokers (-5.38% weekly)These banks specialize in underwriting (helping companies with debt financing or equity issuances), IPOs, facilitating mergers and other corporate reorganizations and acting as a broker or financial advisor for institutions. They might also trade securities on their own accounts. Investment banks potentially thrive on expanding its network of clients, since that could help them increase profits. Goldman Sachs, Morgan Stanley and CME Group Inc are some of the largest investment banking companies.
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LPLA and
Correlation & Price change
A.I.dvisor indicates that over the last year, LPLA has been closely correlated with RJF. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if LPLA jumps, then RJF could also see price increases.
| Ticker / NAME | Correlation To LPLA | 1D Price Change % | ||
|---|---|---|---|---|
| LPLA | 100% | -0.68% | ||
| RJF - LPLA | 71% Closely correlated | +2.25% | ||
| SCHW - LPLA | 68% Closely correlated | -0.22% | ||
| NDAQ - LPLA | 55% Loosely correlated | +7.47% | ||
| MORN - LPLA | 52% Loosely correlated | +4.46% | ||
| MS - LPLA | 49% Loosely correlated | -1.63% | ||
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SCHW and
Correlation & Price change
A.I.dvisor indicates that over the last year, SCHW has been closely correlated with RJF. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SCHW jumps, then RJF could also see price increases.
| Ticker / NAME | Correlation To SCHW | 1D Price Change % | ||
|---|---|---|---|---|
| SCHW | 100% | -0.22% | ||
| RJF - SCHW | 72% Closely correlated | +2.25% | ||
| LPLA - SCHW | 68% Closely correlated | -0.68% | ||
| NDAQ - SCHW | 62% Loosely correlated | +7.47% | ||
| MORN - SCHW | 57% Loosely correlated | +4.46% | ||
| SPGI - SCHW | 56% Loosely correlated | +2.24% | ||
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