Contrasting Robinhood Markets (HOOD) and Its Competitors

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

Earnings and Valuation

This table compares Robinhood Markets and its rivals 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 13.43

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

Institutional and Insider Ownership

64.5% of Robinhood Markets shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Security brokers & dealers” companies are owned by institutional investors. 26.5% of shares of all “Security brokers & dealers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Robinhood Markets and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Robinhood Markets 3 6 6 0 2.20
Robinhood Markets Competitors 533 2226 2251 71 2.37

Robinhood Markets presently has a consensus price target of $21.02, indicating a potential upside of 107.74%. As a group, “Security brokers & dealers” companies have a potential upside of 44.14%. Given Robinhood Markets’ higher possible upside, research analysts clearly believe Robinhood Markets is more favorable than its rivals.

Profitability

This table compares Robinhood Markets and its rivals’ 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 18.80% 19.71% 5.61%

Summary

Robinhood Markets rivals 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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