Critical Contrast: Robinhood Markets (HOOD) vs. Its Peers

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


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 -203.09% -112.72% -17.48%
Robinhood Markets Competitors 19.32% 17.58% 5.46%

Analyst Recommendations

This is a summary of current ratings for Robinhood Markets and its competitors, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Robinhood Markets 3 6 6 0 2.20
Robinhood Markets Competitors 530 2222 2249 71 2.37

Robinhood Markets presently has a consensus target price of $21.36, indicating a potential upside of 117.70%. As a group, “Security brokers & dealers” companies have a potential upside of 44.88%. Given Robinhood Markets’ higher possible upside, equities analysts clearly believe Robinhood Markets is more favorable than its competitors.

Institutional & Insider Ownership

51.5% of Robinhood Markets shares are held by institutional investors. Comparatively, 58.6% of shares of all “Security brokers & dealers” companies are held by institutional investors. 26.4% of shares of all “Security brokers & dealers” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & 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 -0.89
Robinhood Markets Competitors $7.37 billion $1.55 billion 12.45

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.


Robinhood Markets competitors beat Robinhood Markets on 11 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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