Reviewing Robinhood Markets (NASDAQ:HOOD) and The PNC Financial Services Group (NYSE:PNC)

Robinhood Markets (NASDAQ:HOOD) and The PNC Financial Services Group (NYSE:PNC) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares Robinhood Markets and The PNC Financial Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Robinhood Markets	41.12%	21.39%	4.73%
The PNC Financial Services Group	20.89%	12.10%	1.27%

Risk and Volatility

Robinhood Markets has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500. Comparatively, The PNC Financial Services Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares Robinhood Markets and The PNC Financial Services Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Robinhood Markets	$4.61 billion	14.38	$1.88 billion	$2.07	35.58
The PNC Financial Services Group	$34.00 billion	2.62	$6.94 billion	$17.21	12.84

The PNC Financial Services Group has higher revenue and earnings than Robinhood Markets. The PNC Financial Services Group is trading at a lower price-to-earnings ratio than Robinhood Markets, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Robinhood Markets and The PNC Financial Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robinhood Markets	2	5	18	0	2.64
The PNC Financial Services Group	0	6	14	1	2.76

Robinhood Markets currently has a consensus target price of $107.88, suggesting a potential upside of 46.45%. The PNC Financial Services Group has a consensus target price of $241.72, suggesting a potential upside of 9.42%. Given Robinhood Markets’ higher possible upside, equities research analysts plainly believe Robinhood Markets is more favorable than The PNC Financial Services Group.

Institutional and Insider Ownership

93.3% of Robinhood Markets shares are owned by institutional investors. Comparatively, 83.5% of The PNC Financial Services Group shares are owned by institutional investors. 14.5% of Robinhood Markets shares are owned by company insiders. Comparatively, 0.4% of The PNC Financial Services Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Robinhood Markets beats The PNC Financial Services Group on 10 of the 15 factors compared between the two stocks.

About Robinhood Markets

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

About The PNC Financial Services Group

The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group segments. The company's Retail Banking segment offers checking, savings, and money market accounts, as well as time deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services. This segment serves consumer and small business customers through a network of branches, digital channels, ATMs, and through phone-based customer contact centers. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, and equipment leases; cash and investment management services, receivables and disbursement management services, funds transfer services, international payment services, and access to online/mobile information management and reporting; securities underwriting, loan syndications, customer-related trading, and mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions. It serves mid-sized and large corporations, and government and not-for-profit entities. The company's Asset Management Group segment offers investment and retirement planning, customized investment management, credit and cash management solutions, and trust management and administration services for high net worth and ultra high net worth individuals, and their families; and multi-generational family planning services for ultra high net worth individuals and their families. It also provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and retirement plan fiduciary investment services for institutional clients. The company was founded in 1852 and is headquartered in Pittsburgh, Pennsylvania.