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APP vs. HOOD: A Head-to-Head Stock Comparison

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Here’s a clear look at APP and HOOD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAPPHOOD
Company NameAppLovin CorporationRobinhood Markets, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustrySoftwareCapital Markets
Market Capitalization152.44 billion USD95.92 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateApril 15, 2021July 29, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of APP and HOOD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

APP vs. HOOD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAPPHOOD
5-Day Price Return9.23%0.41%
13-Week Price Return28.23%66.65%
26-Week Price Return-8.80%82.24%
52-Week Price Return406.38%442.68%
Month-to-Date Return15.35%4.75%
Year-to-Date Return39.17%189.69%
10-Day Avg. Volume4.90M39.84M
3-Month Avg. Volume6.02M43.33M
3-Month Volatility57.14%54.01%
Beta2.482.37

Profitability

Return on Equity (TTM)

APP

257.74%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

APP’s Return on Equity of 257.74% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

HOOD

22.92%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 22.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

APP vs. HOOD: A comparison of their Return on Equity (TTM) against their respective Software and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

APP

45.72%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 45.72% places APP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

HOOD

50.13%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 50.13% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

APP vs. HOOD: A comparison of their Net Profit Margin (TTM) against their respective Software and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

APP

52.02%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 52.02% places APP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

HOOD

42.50%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

HOOD’s Operating Profit Margin of 42.50% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

APP vs. HOOD: A comparison of their Operating Profit Margin (TTM) against their respective Software and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAPPHOOD
Return on Equity (TTM)257.74%22.92%
Return on Assets (TTM)42.29%5.41%
Net Profit Margin (TTM)45.72%50.13%
Operating Profit Margin (TTM)52.02%42.50%
Gross Profit Margin (TTM)80.87%94.76%

Financial Strength

Current Ratio (MRQ)

APP

2.74

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

APP’s Current Ratio of 2.74 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

HOOD

1.25

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

APP vs. HOOD: A comparison of their Current Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

APP

3.01

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

With a Debt-to-Equity Ratio of 3.01, APP operates with exceptionally high leverage compared to the Software industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

HOOD

1.57

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

APP vs. HOOD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

APP

6.44

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

APP’s Interest Coverage Ratio of 6.44 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

HOOD

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

APP vs. HOOD: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAPPHOOD
Current Ratio (MRQ)2.741.25
Quick Ratio (MRQ)2.541.24
Debt-to-Equity Ratio (MRQ)3.011.57
Interest Coverage Ratio (TTM)6.44--

Growth

Revenue Growth

APP vs. HOOD: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

APP vs. HOOD: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

APP

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

APP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

HOOD

0.00%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

HOOD currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

APP vs. HOOD: A comparison of their Dividend Yield (TTM) against their respective Software and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

APP

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

APP has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

HOOD

0.00%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

HOOD has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

APP vs. HOOD: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAPPHOOD
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

APP

57.41

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

APP’s P/E Ratio of 57.41 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HOOD

52.36

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

A P/E Ratio of 52.36 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

APP vs. HOOD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

APP

26.25

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

With a P/S Ratio of 26.25, APP trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

HOOD

26.24

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 26.24, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

APP vs. HOOD: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

APP

101.50

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

At 101.50, APP’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

HOOD

10.24

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 10.24, HOOD’s P/B Ratio is at an extreme premium to the Capital Markets industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

APP vs. HOOD: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAPPHOOD
Price-to-Earnings Ratio (TTM)57.4152.36
Price-to-Sales Ratio (TTM)26.2526.24
Price-to-Book Ratio (MRQ)101.5010.24
Price-to-Free Cash Flow Ratio (TTM)48.1815.83