CME vs. HOOD: CME vs. Robinhood Markets Stock Comparison

Company Profile

CME (CME) and Robinhood Markets (HOOD) both belong to the Capital Markets industry, though CME is classified under Financial Exchanges & Data while HOOD falls under Investment Banking & Brokerage.

CME (CME) has more than two decades of public-market history since December 6, 2002, whereas Robinhood Markets (HOOD) listed on July 29, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Robinhood Markets (HOOD) has a highly aggressive beta of 2.52, indicating much higher sensitivity to broad-market moves, while CME (CME) is defensive at 0.16 and tends to be less market-sensitive — a wide gap in beta profiles.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both CME (CME) at 16.13% and Robinhood Markets (HOOD) at 21.45% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

CME (CME) at 63.48% keeps the most of each sales dollar — above its industry’s net margin range — and Robinhood Markets (HOOD) at 39.04% also retains a top-quartile share.

CME (CME) at 65.85% operates in the top operating margin quartile, ahead of Robinhood Markets (HOOD) at 48.10%, which runs around its industry’s norm.

Profitability Metrics

Growth

Robinhood Markets (HOOD) at 51.58% sits in the top revenue growth quartile, while CME (CME) at 6.37% is closer to the peer norm — faster top-line expansion for HOOD.

Both CME (CME) at 15.41% and Robinhood Markets (HOOD) at 31.41% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: CME (CME) in Financial Services and Robinhood Markets (HOOD) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: CME (CME) in Financial Services and Robinhood Markets (HOOD) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Robinhood Markets (HOOD) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile CME (CME) reports a yield of 1.68%, ranking against industry peers normally.

Robinhood Markets (HOOD) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile CME (CME) reports a payout of 92.62%, ranking against industry peers normally.

Dividend Metrics

Valuation

Both CME (CME) at 25.07 and Robinhood Markets (HOOD) at 37.29 sit in the richer earnings-multiple quartile for P/E ratio, so investors are paying more for TTM earnings than they pay for typical peers.

Investors are paying well above the peer range per dollar of sales for both CME (CME) at 15.74 and Robinhood Markets (HOOD) at 14.34 — each P/S ratio clears its industry’s benchmark range.

Both CME (CME) at 4.12 and Robinhood Markets (HOOD) at 7.29 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

Valuation Metrics