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, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

64.5% of Robinhood Markets shares are held by institutional investors. Comparatively, 56.8% of shares of all “Security brokers & dealers” companies are held by institutional investors. 26.5% 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 is poised for long-term growth.

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% -33.63% -8.77%
Robinhood Markets Competitors 13.56% 19.18% 5.52%

Analyst Ratings

This is a summary of recent recommendations and price targets for Robinhood Markets and its rivals, as provided 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 presently has a consensus price target of $21.02, indicating a potential upside of 96.66%. As a group, “Security brokers & dealers” companies have a potential upside of 46.01%. Given Robinhood Markets’ higher possible upside, equities analysts plainly believe Robinhood Markets is more favorable than its rivals.

Earnings and Valuation

This table compares Robinhood Markets and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Robinhood Markets $1.82 billion -$3.69 billion -0.97
Robinhood Markets Competitors $7.37 billion $1.55 billion 13.23

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.

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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