Robinhood Markets (HOOD) and Its Peers Head to Head Analysis

Robinhood Markets (NASDAQ:HOODGet Rating) is one of 53 public companies in the “Security brokers & dealers” industry, but how does it weigh in compared to its competitors? We will compare Robinhood Markets to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares Robinhood Markets and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Robinhood Markets $1.82 billion -$3.69 billion -0.92
Robinhood Markets Competitors $7.37 billion $1.55 billion 13.50

Robinhood Markets’ competitors have higher revenue and earnings than Robinhood Markets. Robinhood Markets is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Robinhood Markets and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Robinhood Markets -203.12% -39.39% -8.74%
Robinhood Markets Competitors 13.56% 18.97% 5.52%

Insider and Institutional Ownership

64.5% of Robinhood Markets shares are held by institutional investors. Comparatively, 58.4% of shares of all “Security brokers & dealers” companies are held by institutional investors. 25.1% of shares of all “Security brokers & dealers” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Robinhood Markets and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Robinhood Markets 3 6 6 0 2.20
Robinhood Markets Competitors 536 2233 2254 73 2.37

Robinhood Markets currently has a consensus target price of $21.02, indicating a potential upside of 108.98%. As a group, “Security brokers & dealers” companies have a potential upside of 45.02%. Given Robinhood Markets’ higher probable upside, research analysts clearly believe Robinhood Markets is more favorable than its competitors.

Summary

Robinhood Markets competitors beat Robinhood Markets on 10 of the 12 factors compared.

About Robinhood Markets (Get Rating)

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron's, Reuters, and The Wall Street Journal; lists and alerts, which allow users to create custom watchlists and alerts to monitor securities, ETFs, and cryptocurrencies, as well as cash management services; and offers First trade recommendations to all new customers who have yet to place a trade. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

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