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

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

Company Profile

SymbolHOODRIOT
Company NameRobinhood Markets, Inc.Riot Platforms, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS IndustryCapital MarketsSoftware
Market Capitalization122.18 billion USD6.44 billion USD
ExchangeNasdaqGSNasdaqCM
Listing DateJuly 29, 2021March 31, 2016
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolHOODRIOT
5-Day Price Return-0.67%-10.14%
13-Week Price Return19.59%55.90%
26-Week Price Return171.81%120.92%
52-Week Price Return362.81%39.79%
Month-to-Date Return-7.43%-12.44%
Year-to-Date Return264.68%69.64%
10-Day Avg. Volume28.11M25.63M
3-Month Avg. Volume39.39M35.51M
3-Month Volatility66.96%83.62%
Beta2.433.68

Profitability

Return on Equity (TTM)

HOOD

26.95%

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 26.95% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

RIOT

5.09%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

RIOT’s Return on Equity of 5.09% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

HOOD

52.19%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
Min
-15.18%

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.

RIOT

25.74%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 25.74% places RIOT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

HOOD

47.57%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
Min
-21.87%

An Operating Profit Margin of 47.57% places HOOD in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

RIOT

39.32%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

An Operating Profit Margin of 39.32% places RIOT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolHOODRIOT
Return on Equity (TTM)26.95%5.09%
Return on Assets (TTM)6.73%4.00%
Net Profit Margin (TTM)52.19%25.74%
Operating Profit Margin (TTM)47.57%39.32%
Gross Profit Margin (TTM)95.15%39.55%

Financial Strength

Current Ratio (MRQ)

HOOD

1.22

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.

RIOT

1.47

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

RIOT’s Current Ratio of 1.47 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

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

Debt-to-Equity Ratio (MRQ)

HOOD

1.83

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.

RIOT

0.24

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

RIOT’s Debt-to-Equity Ratio of 0.24 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

RIOT

-2.83

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

RIOT has a negative Interest Coverage Ratio of -2.83. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolHOODRIOT
Current Ratio (MRQ)1.221.47
Quick Ratio (MRQ)1.221.34
Debt-to-Equity Ratio (MRQ)1.830.24
Interest Coverage Ratio (TTM)---2.83

Growth

Revenue Growth

HOOD vs. RIOT: 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. RIOT: 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.

RIOT

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

RIOT 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.

HOOD vs. RIOT: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Software 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.

RIOT

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

RIOT 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.

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

Dividend at a Glance

SymbolHOODRIOT
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

HOOD

55.01

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

At 55.01, 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.

RIOT

40.09

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

RIOT’s P/E Ratio of 40.09 is within the middle range for the Software 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. RIOT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

HOOD

28.71

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

With a P/S Ratio of 28.71, 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.

RIOT

10.32

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

RIOT’s P/S Ratio of 10.32 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

HOOD

14.85

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
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.

RIOT

2.01

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

RIOT’s P/B Ratio of 2.01 is in the lower quartile for the Software 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. RIOT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Software industry benchmarks.

Valuation at a Glance

SymbolHOODRIOT
Price-to-Earnings Ratio (TTM)55.0140.09
Price-to-Sales Ratio (TTM)28.7110.32
Price-to-Book Ratio (MRQ)14.852.01
Price-to-Free Cash Flow Ratio (TTM)20.411,607.69