Reviewing Robinhood Markets (HOOD) and Its Rivals

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

Profitability

This table compares Robinhood Markets and its peers’ 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% 19.21% 5.51%

Analyst Recommendations

This is a summary of current recommendations for Robinhood Markets and its peers, 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 2252 71 2.37

Robinhood Markets currently 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 probable upside, equities analysts plainly believe Robinhood Markets is more favorable than its peers.

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 insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Robinhood Markets and its peers top-line revenue, earnings per share (EPS) 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 13.42

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

Summary

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

Robinhood Markets Company Profile (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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