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

Updated on August 24, 2025

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

Company Profile

Symbol	HOOD	U
Company Name	Robinhood Markets, Inc.	Unity Software Inc.
Country	United States	United States
GICS Sector	Financials	Information Technology
GICS Industry	Capital Markets	Software
Market Capitalization	93.61 billion USD	15.14 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	July 29, 2021	September 18, 2020
Security Type	Common Stock	Common Stock

Historical Performance

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

Historical Performance at a Glance

Symbol	HOOD	U
5-Day Price Return	-4.85%	-6.72%
13-Week Price Return	63.90%	61.15%
26-Week Price Return	65.11%	72.81%
52-Week Price Return	419.43%	114.35%
Month-to-Date Return	2.22%	7.43%
Year-to-Date Return	182.72%	59.50%
10-Day Avg. Volume	41.82M	13.19M
3-Month Avg. Volume	43.59M	13.09M
3-Month Volatility	54.30%	70.37%
Beta	2.37	2.33

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.

U

-13.62%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

U has a negative Return on Equity of -13.62%. 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.

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

U

-24.38%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

U has a negative Net Profit Margin of -24.38%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

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

U

-25.56%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

U has a negative Operating Profit Margin of -25.56%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

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

Profitability at a Glance

Symbol	HOOD	U
Return on Equity (TTM)	22.92%	-13.62%
Return on Assets (TTM)	5.41%	-6.47%
Net Profit Margin (TTM)	50.13%	-24.38%
Operating Profit Margin (TTM)	42.50%	-25.56%
Gross Profit Margin (TTM)	94.76%	74.43%

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.

U

2.73

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

U’s Current Ratio of 2.73 is in the upper quartile for the Software industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

U

0.70

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

U’s Debt-to-Equity Ratio of 0.70 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. U: 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: 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.

U

-27.34

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

U has a negative Interest Coverage Ratio of -27.34. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

Symbol	HOOD	U
Current Ratio (MRQ)	1.25	2.73
Quick Ratio (MRQ)	1.24	2.60
Debt-to-Equity Ratio (MRQ)	1.57	0.70
Interest Coverage Ratio (TTM)	--	-27.34

Growth

Revenue Growth

HOOD vs. U: 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. U: 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.

U

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

U 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. U: 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: 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.

U

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend at a Glance

Symbol	HOOD	U
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.

U

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

P/E Ratio data for U is currently unavailable.

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

U

8.54

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

U’s P/S Ratio of 8.54 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. U: A comparison of their Price-to-Sales Ratio (TTM) against their respective Capital Markets and Software 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.

U

3.16

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

U’s P/B Ratio of 3.16 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. U: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Software industry benchmarks.

Valuation at a Glance

Symbol	HOOD	U
Price-to-Earnings Ratio (TTM)	52.36	--
Price-to-Sales Ratio (TTM)	26.24	8.54
Price-to-Book Ratio (MRQ)	10.24	3.16
Price-to-Free Cash Flow Ratio (TTM)	15.83	44.37