Financial analysis of Robinhood Markets (HOOD) compared to its competitors


Robinhood Markets (NASDAQ:HOOD – Get Rating) is one of 53 publicly traded companies in the “security brokers and dealers” industry, but how does it stack up against its competitors? We will compare Robinhood Markets to related companies based on the strength of its institutional ownership, analyst recommendations, risk, dividends, profitability, valuation and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Robinhood Markets and its rivals, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Robinhood Markets 3 6 6 0 2.20
Competitors in Robinhood Marketplaces 533 2226 2251 71 2.37

Robinhood Markets currently has a consensus price target of $21.02, indicating a potential upside of 107.74%. As a group, the Securities Brokers and Dealers companies have an upside potential of 44.14%. Given Robinhood Markets’ possible higher upside, stock analysts clearly believe that Robinhood Markets is more favorable than its rivals.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Robinhood Markets and its rivals.

Gross revenue Net revenue Price/earnings ratio
Robinhood Markets $1.82 billion -$3.69 billion -0.92
Competitors in Robinhood Marketplaces $7.37 billion $1.55 billion 1:43 p.m.

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

Profitability

This table compares the net margins, return on equity and return on assets of Robinhood Markets and its competitors.

Net margins Return on equity return on assets
Robinhood Markets -203.12% -39.39% -8.74%
Competitors in Robinhood Marketplaces 13.56% 19.21% 5.51%

Institutional and Insider Ownership

64.5% of Robinhood Markets shares are held by institutional investors. By comparison, 56.8% of the shares of all securities brokers and dealers are held by institutional investors. 26.5% of the shares of all “stock brokers and traders” companies are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Summary

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

About Robinhood Markets (Get a rating)

Robinhood Markets, Inc. operates a 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 a variety of learning and education solutions, including Snacks, a business news digest; Learn, which is a collection of about articles including guides, feature tutorials, and a financial dictionary; Newsfeeds that provide free access to premium news from various sites, such as Barron’s, Reuters and The Wall Street Journal; Lists and Alerts, which allows 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 not yet made a trade. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.



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Sarah J. Greer