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Robinhood Markets (HOOD) Stock Analysis

This is a peer-relative look at Robinhood Markets (HOOD): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Robinhood Markets (HOOD)
Profile ItemHOOD
NameRobinhood Markets Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryCapital Markets
GICS Sub-IndustryInvestment Banking & Brokerage
Market Capitalization72.86 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJuly 29, 2021
Security TypeCommon Stock

Price Performance

Cumulative Growth

HOOD
GSPC
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Robinhood Markets (HOOD) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Robinhood Markets (HOOD) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Robinhood Markets (HOOD) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Total Return (1Y)-35.46%1.90%
Total Return (3Y, Annualized)119.74%12.71%
Total Return (5Y, Annualized)18.05%2.81%

Risk Profile

Drawdown History

HOOD
GSPC
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Robinhood Markets (HOOD) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Robinhood Markets (HOOD) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Volatility (1Y, Annualized)71.13%36.24%
Beta (5Y)2.521.04
Max Drawdown (5Y)-81.23%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. HOOD is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Sharpe Ratio (1Y)-0.56-0.09
Sortino Ratio (1Y)-0.82-0.13

Profitability

ROE (TTM)

Robinhood Markets (HOOD) posts ROE of 21.45%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

HOOD

Financial Services industry group

21.45%

Group distribution
Max
44.78%
Q3
21.85%
HOOD
21.45%
Median
12.91%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
V
63.51%
HOOD
21.45%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
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Where Robinhood Markets (HOOD) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Robinhood Markets (HOOD) keeps 39.04% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

HOOD

Financial Services industry group

39.04%

Group distribution
Max
62.84%
HOOD
39.04%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
HOOD
39.04%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
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Where Robinhood Markets (HOOD) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Robinhood Markets (HOOD) turns 48.10% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

HOOD

Financial Services industry group

48.10%

Group distribution
Max
107.33%
Q3
55.90%
HOOD
48.10%
Median
30.09%
Q1
14.60%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
HOOD
48.10%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
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Where Robinhood Markets (HOOD) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
ROE (TTM)21.45%12.91%
ROA (TTM)4.01%3.60%
Net Margin (TTM)39.04%15.36%
Operating Margin (TTM)48.10%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Robinhood Markets (HOOD) grew revenue 51.58%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Robinhood Markets (HOOD): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Robinhood Markets (HOOD) grew earnings per share 31.41%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Robinhood Markets (HOOD): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Revenue Growth (YoY)51.58%9.46%
Revenue Growth (3Y CAGR)48.79%10.90%
EPS Growth (YoY)31.41%7.46%
EPS Growth (3Y CAGR)--13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Robinhood Markets (HOOD) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Robinhood Markets (HOOD) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Robinhood Markets (HOOD) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

HOOD

Financial Services industry group

0.00%

Group distribution
Max
9.77%
Q3
3.92%
Median
1.09%
HOOD
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MS
2.40%
GS
2.07%
V
0.66%
MA
0.53%
HOOD
0.00%
BRK.A
0.00%
BRK.B
0.00%
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Where Robinhood Markets (HOOD) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Robinhood Markets (HOOD) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

HOOD

Financial Services industry group

0.00%

Group distribution
Max
241.07%
Q3
97.36%
Median
25.77%
HOOD
0.00%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
HOOD
0.00%
BRK.A
0.00%
BRK.B
0.00%
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Where Robinhood Markets (HOOD) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
Dividend Yield (TTM)0.00%1.09%
Dividend Payout Ratio (TTM)0.00%25.77%

Valuation

P/E Ratio (TTM)

Robinhood Markets (HOOD) trades at P/E ratio of 37.29, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

HOOD

Financial Services industry group

37.29

Group distribution
Max
45.85
HOOD
37.29
Q3
24.64
Median
15.37
Q1
9.68
Min
0.16
Largest peers
HOOD
37.29
V
34.31
MA
34.15
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
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Where Robinhood Markets (HOOD) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Robinhood Markets (HOOD) trades at 14.34 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

HOOD

Financial Services industry group

14.34

Group distribution
HOOD
14.34
Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
HOOD
14.34
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
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Where Robinhood Markets (HOOD) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Robinhood Markets (HOOD) trades at 7.29 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

HOOD

Financial Services industry group

7.29

Group distribution
Max
7.79
HOOD
7.29
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
HOOD
7.29
MS
2.65
GS
2.36
BRK.A
1.72
BRK.B
0.00
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Where Robinhood Markets (HOOD) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Robinhood Markets (HOOD) metric values compared with Financial Services industry-group medians
MetricCurrent stock: HOODIndustry group median
P/E Ratio (TTM)37.2915.37
P/S Ratio (TTM)14.342.72
P/B Ratio (MRQ)7.291.57
Free Cash Flow Yield (TTM)----