HOOD vs. SCHW: Robinhood Markets vs. Charles Schwab Stock Comparison

Company Profile

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

Charles Schwab (SCHW) has more than two decades of public-market history since September 22, 1987, whereas Robinhood Markets (HOOD) listed on July 29, 2021 and has a much shorter record to draw on.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Robinhood Markets (HOOD) carries a highly aggressive beta of 2.52, indicating much higher sensitivity to broad-market moves, whereas Charles Schwab (SCHW) is closer to market-like at 0.74 — a noticeable difference in market-sensitivity profile.

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Robinhood Markets (HOOD) at 21.45% and Charles Schwab (SCHW) at 21.12% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

For every dollar of sales, both Robinhood Markets (HOOD) at 39.04% and Charles Schwab (SCHW) at 39.33% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

Both Robinhood Markets (HOOD) at 48.10% and Charles Schwab (SCHW) at 52.67% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

Profitability Metrics

Growth

Robinhood Markets (HOOD) at 51.58% sits in the top revenue growth quartile, while Charles Schwab (SCHW) at 22.01% is closer to the peer norm — faster top-line expansion for HOOD.

Charles Schwab (SCHW) at 55.52% sits in the top EPS growth quartile, while Robinhood Markets (HOOD) at 31.41% is closer to the peer norm — faster per-share earnings growth for SCHW.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Robinhood Markets (HOOD) in Financial Services and Charles Schwab (SCHW) 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 Charles Schwab (SCHW) 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 Charles Schwab (SCHW) reports a yield of 1.33%, 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 Charles Schwab (SCHW) reports a payout of 21.03%, ranking against industry peers normally.

Dividend Metrics

Valuation

Charles Schwab (SCHW) at 15.64 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.

Both look expensive on sales: Charles Schwab (SCHW) at 5.85 sits in the upper P/S ratio quartile, and Robinhood Markets (HOOD) at 14.34 prices even higher, above its industry range.

Charles Schwab (SCHW) at 3.08 is valued about in line with its industry on P/B ratio, while Robinhood Markets (HOOD) at 7.29 carries an above-peer premium to book — HOOD is pricier on assets.

Valuation Metrics