HOOD vs. NET: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HOOD and NET, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HOOD | NET |
|---|---|---|
| Company Name | Robinhood Markets, Inc. | Cloudflare, Inc. |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Capital Markets | IT Services |
| Market Capitalization | 107.69 billion USD | 75.39 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 29, 2021 | September 13, 2019 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HOOD and NET 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 | NET |
|---|---|---|
| 5-Day Price Return | 12.92% | -1.37% |
| 13-Week Price Return | 52.92% | 9.58% |
| 26-Week Price Return | 220.10% | 77.13% |
| 52-Week Price Return | 499.33% | 163.01% |
| Month-to-Date Return | 37.63% | 2.82% |
| Year-to-Date Return | 284.27% | 99.28% |
| 10-Day Avg. Volume | 53.37M | 2.58M |
| 3-Month Avg. Volume | 44.64M | 2.89M |
| 3-Month Volatility | 62.75% | 36.53% |
| Beta | 2.43 | 2.12 |
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.
NET
-10.00%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
NET
-6.22%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
NET
-9.89%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | HOOD | NET |
|---|---|---|
| Return on Equity (TTM) | 22.92% | -10.00% |
| Return on Assets (TTM) | 5.41% | -2.99% |
| Net Profit Margin (TTM) | 50.13% | -6.22% |
| Operating Profit Margin (TTM) | 42.50% | -9.89% |
| Gross Profit Margin (TTM) | 94.76% | 76.14% |
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.
NET
5.14
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
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.
NET
2.63
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
NET’s leverage is in the upper quartile of the IT Services industry, with a Debt-to-Equity Ratio of 2.63. 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
- 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.
NET
-4.24
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | HOOD | NET |
|---|---|---|
| Current Ratio (MRQ) | 1.25 | 5.14 |
| Quick Ratio (MRQ) | 1.24 | 5.01 |
| Debt-to-Equity Ratio (MRQ) | 1.57 | 2.63 |
| Interest Coverage Ratio (TTM) | -- | -4.24 |
Growth
Revenue Growth
EPS Growth
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.
NET
0.00%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
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.
NET
0.00%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
NET 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.
Dividend at a Glance
| Symbol | HOOD | NET |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
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.
NET
--
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
P/E Ratio data for NET is currently unavailable.
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.
NET
40.25
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
With a P/S Ratio of 40.25, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
NET
54.75
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services 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.
Valuation at a Glance
| Symbol | HOOD | NET |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 69.16 | -- |
| Price-to-Sales Ratio (TTM) | 34.67 | 40.25 |
| Price-to-Book Ratio (MRQ) | 10.24 | 54.75 |
| Price-to-Free Cash Flow Ratio (TTM) | 20.90 | 422.68 |