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

Updated on August 29, 2025

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

Company Profile

Symbol	HOOD	SPOT
Company Name	Robinhood Markets, Inc.	Spotify Technology S.A.
Country	United States	Luxembourg
GICS Sector	Financials	Communication Services
GICS Industry	Capital Markets	Entertainment
Market Capitalization	91.46 billion USD	142.60 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	July 29, 2021	April 3, 2018
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	HOOD	SPOT
5-Day Price Return	-3.18%	0.51%
13-Week Price Return	55.89%	6.06%
26-Week Price Return	99.46%	14.10%
52-Week Price Return	391.03%	106.20%
Month-to-Date Return	-0.13%	10.61%
Year-to-Date Return	176.22%	54.90%
10-Day Avg. Volume	37.40M	1.55M
3-Month Avg. Volume	43.23M	2.18M
3-Month Volatility	55.01%	44.13%
Beta	2.36	1.70

Profitability

Return on Equity (TTM)

HOOD

22.92%

Capital Markets Industry

Max: 38.97%
Q3: 21.61%
Median: 13.77%
Q1: 8.31%
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.

SPOT

14.00%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

SPOT’s Return on Equity of 14.00% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

HOOD

50.13%

Capital Markets Industry

Max: 66.67%
Q3: 35.11%
Median: 23.49%
Q1: 13.63%
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.

SPOT

4.85%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

Falling into the lower quartile for the Entertainment industry, SPOT’s Net Profit Margin of 4.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

HOOD

42.50%

Capital Markets Industry

Max: 86.40%
Q3: 46.46%
Median: 32.80%
Q1: 18.32%
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.

SPOT

11.11%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

SPOT’s Operating Profit Margin of 11.11% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

Symbol	HOOD	SPOT
Return on Equity (TTM)	22.92%	14.00%
Return on Assets (TTM)	5.41%	6.62%
Net Profit Margin (TTM)	50.13%	4.85%
Operating Profit Margin (TTM)	42.50%	11.11%
Gross Profit Margin (TTM)	94.76%	31.63%

Financial Strength

Current Ratio (MRQ)

HOOD

1.25

Capital Markets Industry

Max: 3.76
Q3: 1.89
Median: 1.01
Q1: 0.54
Min: -0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

SPOT

1.47

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

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

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

Debt-to-Equity Ratio (MRQ)

HOOD

1.57

Capital Markets Industry

Max: 6.62
Q3: 2.84
Median: 1.02
Q1: 0.32
Min: 0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

SPOT

0.36

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

SPOT’s Debt-to-Equity Ratio of 0.36 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HOOD vs. SPOT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

HOOD

Capital Markets Industry

Max: 126.03
Q3: 60.98
Median: 11.77
Q1: 4.95
Min: -36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

SPOT

38.25

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

SPOT’s Interest Coverage Ratio of 38.25 is in the upper quartile for the Entertainment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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

Financial Strength at a Glance

Symbol	HOOD	SPOT
Current Ratio (MRQ)	1.25	1.47
Quick Ratio (MRQ)	1.24	1.46
Debt-to-Equity Ratio (MRQ)	1.57	0.36
Interest Coverage Ratio (TTM)	--	38.25

Growth

Revenue Growth

HOOD vs. SPOT: 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. SPOT: 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: 10.26%
Q3: 4.86%
Median: 2.78%
Q1: 1.22%
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.

SPOT

0.00%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

SPOT 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. SPOT: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

HOOD

0.00%

Capital Markets Industry

Max: 200.72%
Q3: 101.92%
Median: 57.97%
Q1: 32.36%
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.

SPOT

0.00%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

SPOT 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. SPOT: A comparison of their Dividend Payout Ratio (TTM) against their respective Capital Markets and Entertainment industry benchmarks.

Dividend at a Glance

Symbol	HOOD	SPOT
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

HOOD

52.36

Capital Markets Industry

Max: 58.89
Q3: 31.00
Median: 18.54
Q1: 12.09
Min: 5.24

A P/E Ratio of 52.36 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

SPOT

151.28

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

At 151.28, SPOT’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Entertainment industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

HOOD vs. SPOT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

HOOD

26.24

Capital Markets Industry

Max: 14.49
Q3: 7.41
Median: 4.68
Q1: 2.25
Min: 0.04

With a P/S Ratio of 26.24, 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.

SPOT

7.34

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

SPOT’s P/S Ratio of 7.34 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

Price-to-Book Ratio (MRQ)

HOOD

10.24

Capital Markets Industry

Max: 9.48
Q3: 4.94
Median: 2.42
Q1: 1.21
Min: 0.38

At 10.24, 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.

SPOT

20.34

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

At 20.34, SPOT’s P/B Ratio is at an extreme premium to the Entertainment 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.

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

Valuation at a Glance

Symbol	HOOD	SPOT
Price-to-Earnings Ratio (TTM)	52.36	151.28
Price-to-Sales Ratio (TTM)	26.24	7.34
Price-to-Book Ratio (MRQ)	10.24	20.34
Price-to-Free Cash Flow Ratio (TTM)	15.83	43.24