HOOD vs. IBM: A Head-to-Head Stock Comparison
Updated onHere’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 | 104.07 billion USD | 281.44 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.
Historical Performance at a Glance
| Symbol | HOOD | IBM |
|---|---|---|
| 5-Day Price Return | -9.85% | -1.11% |
| 13-Week Price Return | 7.30% | 27.52% |
| 26-Week Price Return | 95.78% | 18.21% |
| 52-Week Price Return | 283.89% | 44.93% |
| Month-to-Date Return | -16.54% | -0.56% |
| Year-to-Date Return | 228.77% | 39.06% |
| 10-Day Avg. Volume | 31.05M | 4.95M |
| 3-Month Avg. Volume | 38.35M | 5.47M |
| 3-Month Volatility | 68.70% | 27.54% |
| Beta | 2.45 | 0.68 |
Profitability
Return on Equity (TTM)
HOOD
26.95%
Capital Markets Industry
- Max
- 41.61%
- Q3
- 22.56%
- Median
- 13.62%
- Q1
- 9.23%
- Min
- -4.25%
In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 26.95% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
IBM
28.86%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
In the upper quartile for the IT Services industry, IBM’s Return on Equity of 28.86% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
HOOD
52.19%
Capital Markets Industry
- Max
- 69.91%
- Q3
- 36.88%
- Median
- 24.30%
- Q1
- 13.14%
- Min
- -6.20%
A Net Profit Margin of 52.19% 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
12.09%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
A Net Profit Margin of 12.09% places IBM in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
HOOD
47.57%
Capital Markets Industry
- Max
- 83.68%
- Q3
- 47.64%
- Median
- 32.36%
- Q1
- 19.28%
- Min
- 0.30%
HOOD’s Operating Profit Margin of 47.57% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
IBM
14.51%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
IBM’s Operating Profit Margin of 14.51% is around the midpoint for the IT Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | HOOD | IBM |
|---|---|---|
| Return on Equity (TTM) | 26.95% | 28.86% |
| Return on Assets (TTM) | 6.73% | 5.48% |
| Net Profit Margin (TTM) | 52.19% | 12.09% |
| Operating Profit Margin (TTM) | 47.57% | 14.51% |
| Gross Profit Margin (TTM) | 95.15% | 57.81% |
Financial Strength
Current Ratio (MRQ)
HOOD
1.22
Capital Markets Industry
- Max
- 3.43
- Q3
- 1.76
- Median
- 1.00
- Q1
- 0.60
- Min
- 0.04
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
IBM
0.93
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
IBM’s Current Ratio of 0.93 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.
Debt-to-Equity Ratio (MRQ)
HOOD
1.83
Capital Markets Industry
- Max
- 6.12
- Q3
- 2.78
- Median
- 0.96
- Q1
- 0.31
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
IBM
2.26
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
IBM’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.26. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
HOOD
--
Capital Markets Industry
- Max
- 107.59
- Q3
- 50.42
- Median
- 10.94
- Q1
- 4.37
- 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
- 1.68
- 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.
Financial Strength at a Glance
| Symbol | HOOD | IBM |
|---|---|---|
| Current Ratio (MRQ) | 1.22 | 0.93 |
| Quick Ratio (MRQ) | 1.22 | 0.81 |
| Debt-to-Equity Ratio (MRQ) | 1.83 | 2.26 |
| Interest Coverage Ratio (TTM) | -- | 45.57 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HOOD
0.00%
Capital Markets Industry
- Max
- 8.63%
- Q3
- 4.88%
- Median
- 2.72%
- Q1
- 1.41%
- 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
2.20%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.20%, IBM offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
HOOD
0.00%
Capital Markets Industry
- Max
- 188.84%
- Q3
- 96.52%
- Median
- 61.58%
- Q1
- 31.74%
- 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
78.74%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
IBM’s Dividend Payout Ratio of 78.74% 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.
Dividend at a Glance
| Symbol | HOOD | IBM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.20% |
| Dividend Payout Ratio (TTM) | 0.00% | 78.74% |
Valuation
Price-to-Earnings Ratio (TTM)
HOOD
47.53
Capital Markets Industry
- Max
- 47.53
- Q3
- 28.81
- Median
- 16.62
- Q1
- 12.06
- Min
- 5.71
A P/E Ratio of 47.53 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.
IBM
35.83
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
A P/E Ratio of 35.83 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.
Price-to-Sales Ratio (TTM)
HOOD
24.80
Capital Markets Industry
- Max
- 13.23
- Q3
- 6.65
- Median
- 4.40
- Q1
- 2.22
- Min
- 0.03
With a P/S Ratio of 24.80, 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
4.33
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
IBM’s P/S Ratio of 4.33 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
HOOD
14.85
Capital Markets Industry
- Max
- 10.83
- Q3
- 5.27
- Median
- 2.66
- Q1
- 1.34
- Min
- 0.37
At 14.85, 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.
IBM
9.42
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
IBM’s P/B Ratio of 9.42 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.
Valuation at a Glance
| Symbol | HOOD | IBM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 47.53 | 35.83 |
| Price-to-Sales Ratio (TTM) | 24.80 | 4.33 |
| Price-to-Book Ratio (MRQ) | 14.85 | 9.42 |
| Price-to-Free Cash Flow Ratio (TTM) | 17.63 | 23.67 |