Head to Head Comparison: Robinhood Markets (HOOD) & Its Peers

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Robinhood Markets and its peers, 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 535 2231 2253 73 2.37

Robinhood Markets currently has a consensus price target of $21.02, suggesting a potential upside of 145.60%. As a group, “Security brokers & dealers” companies have a potential upside of 49.76%. Given Robinhood Markets’ higher probable upside, equities analysts clearly believe Robinhood Markets is more favorable than its peers.

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%

Insider and Institutional Ownership

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

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 -0.78
Robinhood Markets Competitors $7.37 billion $1.55 billion 12.92

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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