Seek Returns logo

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

Updated on

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

Company Profile

HOOD is a standard domestic listing, while NOK trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolHOODNOK
Company NameRobinhood Markets, Inc.Nokia Oyj
CountryUnited StatesFinland
GICS SectorFinancialsInformation Technology
GICS IndustryCapital MarketsCommunications Equipment
Market Capitalization107.69 billion USD25.93 billion USD
ExchangeNasdaqGSNYSE
Listing DateJuly 29, 2021July 1, 1994
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of HOOD and NOK 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. NOK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHOODNOK
5-Day Price Return12.92%1.54%
13-Week Price Return52.92%-7.42%
26-Week Price Return220.10%-17.75%
52-Week Price Return499.33%-30.85%
Month-to-Date Return37.63%10.87%
Year-to-Date Return284.27%-4.57%
10-Day Avg. Volume53.37M25.62M
3-Month Avg. Volume44.64M11.09M
3-Month Volatility62.75%30.86%
Beta2.430.72

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.

NOK

5.01%

Communications Equipment Industry

Max
32.30%
Q3
20.90%
Median
9.10%
Q1
4.29%
Min
-13.50%

NOK’s Return on Equity of 5.01% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

HOOD vs. NOK: A comparison of their Return on Equity (TTM) against their respective Capital Markets and Communications Equipment 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.

NOK

5.31%

Communications Equipment Industry

Max
23.65%
Q3
12.56%
Median
5.62%
Q1
2.50%
Min
-3.09%

NOK’s Net Profit Margin of 5.31% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

HOOD vs. NOK: A comparison of their Net Profit Margin (TTM) against their respective Capital Markets and Communications Equipment 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.

NOK

6.21%

Communications Equipment Industry

Max
25.23%
Q3
13.72%
Median
6.44%
Q1
3.00%
Min
-10.95%

NOK’s Operating Profit Margin of 6.21% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

HOOD vs. NOK: A comparison of their Operating Profit Margin (TTM) against their respective Capital Markets and Communications Equipment industry benchmarks.

Profitability at a Glance

SymbolHOODNOK
Return on Equity (TTM)22.92%5.01%
Return on Assets (TTM)5.41%2.68%
Net Profit Margin (TTM)50.13%5.31%
Operating Profit Margin (TTM)42.50%6.21%
Gross Profit Margin (TTM)94.76%44.23%

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.

NOK

1.46

Communications Equipment Industry

Max
3.33
Q3
2.13
Median
1.55
Q1
1.15
Min
0.91

NOK’s Current Ratio of 1.46 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

HOOD vs. NOK: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Communications Equipment 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.

NOK

0.21

Communications Equipment Industry

Max
1.44
Q3
0.86
Median
0.53
Q1
0.22
Min
0.00

Falling into the lower quartile for the Communications Equipment industry, NOK’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

HOOD vs. NOK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Communications Equipment 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.

NOK

34.19

Communications Equipment Industry

Max
55.49
Q3
34.19
Median
7.59
Q1
3.73
Min
-9.94

NOK’s Interest Coverage Ratio of 34.19 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

HOOD vs. NOK: A comparison of their Interest Coverage Ratio (TTM) against their respective Capital Markets and Communications Equipment industry benchmarks.

Financial Strength at a Glance

SymbolHOODNOK
Current Ratio (MRQ)1.251.46
Quick Ratio (MRQ)1.241.21
Debt-to-Equity Ratio (MRQ)1.570.21
Interest Coverage Ratio (TTM)--34.19

Growth

Revenue Growth

HOOD vs. NOK: 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. NOK: 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.

NOK

3.22%

Communications Equipment Industry

Max
8.13%
Q3
3.29%
Median
0.94%
Q1
0.00%
Min
0.00%

NOK’s Dividend Yield of 3.22% is consistent with its peers in the Communications Equipment industry, providing a dividend return that is standard for its sector.

HOOD vs. NOK: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Communications Equipment 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.

NOK

50.74%

Communications Equipment Industry

Max
111.16%
Q3
70.91%
Median
30.78%
Q1
0.00%
Min
0.00%

NOK’s Dividend Payout Ratio of 50.74% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HOOD vs. NOK: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Communications Equipment industry benchmarks.

Dividend at a Glance

SymbolHOODNOK
Dividend Yield (TTM)0.00%3.22%
Dividend Payout Ratio (TTM)0.00%50.74%

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.

NOK

21.54

Communications Equipment Industry

Max
103.74
Q3
61.65
Median
26.20
Q1
18.12
Min
4.19

NOK’s P/E Ratio of 21.54 is within the middle range for the Communications Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HOOD vs. NOK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Communications Equipment 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.

NOK

1.14

Communications Equipment Industry

Max
6.86
Q3
6.24
Median
2.44
Q1
1.02
Min
0.48

NOK’s P/S Ratio of 1.14 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HOOD vs. NOK: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Communications Equipment 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.

NOK

1.21

Communications Equipment Industry

Max
6.28
Q3
5.73
Median
3.32
Q1
2.02
Min
0.42

NOK’s P/B Ratio of 1.21 is in the lower quartile for the Communications Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

HOOD vs. NOK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Communications Equipment industry benchmarks.

Valuation at a Glance

SymbolHOODNOK
Price-to-Earnings Ratio (TTM)69.1621.54
Price-to-Sales Ratio (TTM)34.671.14
Price-to-Book Ratio (MRQ)10.241.21
Price-to-Free Cash Flow Ratio (TTM)20.9014.85