HOOD vs. LPLA: Robinhood Markets vs. LPL Financial Stock Comparison

Company Profile

Robinhood Markets (HOOD) and LPL Financial (LPLA) are both classified in the Investment Banking & Brokerage sub-industry within the broader Capital Markets industry, placing them in the closest GICS peer bucket.

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 LPL Financial (LPLA) is defensive at 0.52 and tends to be less market-sensitive — a wide gap in beta profiles.

Robinhood Markets (HOOD) is heavily traded at around 20.63M shares per day, whereas LPL Financial (LPLA) sees a more moderate 855.76K — larger orders in the latter may require more patience and tighter control over order sizing.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

LPL Financial (LPLA) at 25.66% sits in the top ROE quartile, while Robinhood Markets (HOOD) at 21.45% is closer to the peer norm — stronger capital efficiency for LPLA.

Robinhood Markets (HOOD) at 39.04% retains a top-quartile share of revenue as profit, ahead of LPL Financial (LPLA) at 6.97%, which keeps about the industry-typical share.

Robinhood Markets (HOOD) at 48.10% runs core operations around its industry’s norm, while LPL Financial (LPLA) at 10.85% operates in the bottom quartile.

Profitability Metrics

Growth

Both Robinhood Markets (HOOD) at 51.58% and LPL Financial (LPLA) at 37.18% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.

Both Robinhood Markets (HOOD) at 31.41% and LPL Financial (LPLA) at -22.17% 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: Robinhood Markets (HOOD) in Financial Services and LPL Financial (LPLA) 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: Robinhood Markets (HOOD) in Financial Services and LPL Financial (LPLA) 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 LPL Financial (LPLA) reports a yield of 0.40%, 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 LPL Financial (LPLA) reports a payout of 6.88%, ranking against industry peers normally.

Dividend Metrics

Valuation

LPL Financial (LPLA) at 16.93 is near its industry’s usual P/E ratio, while Robinhood Markets (HOOD) at 37.29 sits in the richer quartile — HOOD needs stronger growth or earnings quality to justify the premium.

LPL Financial (LPLA) at 1.15 sits in the cheaper P/S ratio quartile while Robinhood Markets (HOOD) at 14.34 prices above its industry range — a wide gap in sales valuation between them.

Both Robinhood Markets (HOOD) at 7.29 and LPL Financial (LPLA) at 3.98 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

Valuation Metrics