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

Updated on October 4, 2025

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

Company Profile

Symbol	HOOD	IBM
Company Name	Robinhood Markets, Inc.	International Business Machines Corporation
Country	United States	United States
GICS Sector	Financials	Information Technology
GICS Industry	Capital Markets	IT Services
Market Capitalization	107.69 billion USD	268.90 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	July 29, 2021	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of HOOD and IBM 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.

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

Historical Performance at a Glance

Symbol	HOOD	IBM
5-Day Price Return	12.92%	5.47%
13-Week Price Return	52.92%	-4.28%
26-Week Price Return	220.10%	12.71%
52-Week Price Return	499.33%	27.77%
Month-to-Date Return	37.63%	15.88%
Year-to-Date Return	284.27%	28.35%
10-Day Avg. Volume	53.37M	6.49M
3-Month Avg. Volume	44.64M	4.69M
3-Month Volatility	62.75%	26.73%
Beta	2.43	0.69

Profitability

Return on Equity (TTM)

HOOD

22.92%

Capital Markets Industry

Max: 38.97%
Q3: 22.24%
Median: 13.52%
Q1: 8.61%
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.

IBM

21.99%

IT Services Industry

Max: 32.78%
Q3: 19.28%
Median: 13.86%
Q1: 5.50%
Min: -10.00%

In the upper quartile for the IT Services industry, IBM’s Return on Equity of 21.99% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

HOOD

50.13%

Capital Markets Industry

Max: 69.91%
Q3: 37.24%
Median: 24.30%
Q1: 13.06%
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.

IBM

9.11%

IT Services Industry

Max: 19.71%
Q3: 11.01%
Median: 6.66%
Q1: 2.96%
Min: -6.22%

IBM’s Net Profit Margin of 9.11% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

HOOD

42.50%

Capital Markets Industry

Max: 84.86%
Q3: 47.16%
Median: 32.23%
Q1: 18.65%
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.

IBM

9.77%

IT Services Industry

Max: 22.44%
Q3: 14.90%
Median: 8.82%
Q1: 4.91%
Min: -9.89%

IBM’s Operating Profit Margin of 9.77% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	HOOD	IBM
Return on Equity (TTM)	22.92%	21.99%
Return on Assets (TTM)	5.41%	4.12%
Net Profit Margin (TTM)	50.13%	9.11%
Operating Profit Margin (TTM)	42.50%	9.77%
Gross Profit Margin (TTM)	94.76%	57.57%

Financial Strength

Current Ratio (MRQ)

HOOD

1.25

Capital Markets Industry

Max: 3.37
Q3: 1.81
Median: 1.01
Q1: 0.56
Min: 0.04

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

IBM

0.91

IT Services Industry

Max: 3.17
Q3: 2.00
Median: 1.47
Q1: 1.05
Min: 0.52

IBM’s Current Ratio of 0.91 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

HOOD

1.57

Capital Markets Industry

Max: 6.52
Q3: 2.79
Median: 0.96
Q1: 0.28
Min: 0.00

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

IBM

2.33

IT Services Industry

Max: 3.11
Q3: 1.55
Median: 0.55
Q1: 0.17
Min: 0.00

IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.33. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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

Interest Coverage Ratio (TTM)

HOOD

Capital Markets Industry

Max: 107.59
Q3: 48.41
Median: 10.85
Q1: 4.56
Min: -36.26

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

IBM

45.57

IT Services Industry

Max: 129.00
Q3: 56.00
Median: 11.69
Q1: 0.77
Min: -28.15

IBM’s Interest Coverage Ratio of 45.57 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

Symbol	HOOD	IBM
Current Ratio (MRQ)	1.25	0.91
Quick Ratio (MRQ)	1.24	0.80
Debt-to-Equity Ratio (MRQ)	1.57	2.33
Interest Coverage Ratio (TTM)	--	45.57

Growth

Revenue Growth

HOOD vs. IBM: 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

HOOD vs. IBM: 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)

HOOD

0.00%

Capital Markets Industry

Max: 9.02%
Q3: 4.54%
Median: 2.55%
Q1: 1.27%
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.

IBM

2.35%

IT Services Industry

Max: 2.79%
Q3: 1.76%
Median: 0.58%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.35%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

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

Dividend Payout Ratio (TTM)

HOOD

0.00%

Capital Markets Industry

Max: 199.38%
Q3: 99.28%
Median: 60.67%
Q1: 32.00%
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.

IBM

75.57%

IT Services Industry

Max: 107.85%
Q3: 52.62%
Median: 22.53%
Q1: 0.00%
Min: 0.00%

IBM’s Dividend Payout Ratio of 75.57% is in the upper quartile for the IT Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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

Dividend at a Glance

Symbol	HOOD	IBM
Dividend Yield (TTM)	0.00%	2.35%
Dividend Payout Ratio (TTM)	0.00%	75.57%

Valuation

Price-to-Earnings Ratio (TTM)

HOOD

69.16

Capital Markets Industry

Max: 51.69
Q3: 29.42
Median: 17.58
Q1: 12.55
Min: 5.59

At 69.16, HOOD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

IBM

45.14

IT Services Industry

Max: 56.41
Q3: 33.17
Median: 23.17
Q1: 16.18
Min: 6.62

A P/E Ratio of 45.14 places IBM in the upper quartile for the IT Services industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

HOOD

34.67

Capital Markets Industry

Max: 14.65
Q3: 7.29
Median: 4.53
Q1: 2.26
Min: 0.04

With a P/S Ratio of 34.67, 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.

IBM

4.11

IT Services Industry

Max: 5.99
Q3: 4.26
Median: 1.93
Q1: 0.97
Min: 0.12

IBM’s P/S Ratio of 4.11 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

HOOD

10.24

Capital Markets Industry

Max: 10.83
Q3: 5.12
Median: 2.66
Q1: 1.19
Min: 0.37

HOOD’s P/B Ratio of 10.24 is in the upper tier for the Capital Markets industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

IBM

9.96

IT Services Industry

Max: 12.34
Q3: 7.54
Median: 3.84
Q1: 2.52
Min: 0.88

IBM’s P/B Ratio of 9.96 is in the upper tier for the IT Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

Symbol	HOOD	IBM
Price-to-Earnings Ratio (TTM)	69.16	45.14
Price-to-Sales Ratio (TTM)	34.67	4.11
Price-to-Book Ratio (MRQ)	10.24	9.96
Price-to-Free Cash Flow Ratio (TTM)	20.90	22.40