Robinhood Markets (NASDAQ:HOOD – Get Free Report) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its peers? We will compare Robinhood Markets to similar businesses based on the strength of its analyst recommendations, dividends, earnings, valuation, risk, institutional ownership and profitability.
Valuation and Earnings
This table compares Robinhood Markets and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Robinhood Markets | $4.47 billion | $1.88 billion | 38.98 |
| Robinhood Markets Competitors | $2.32 billion | $399.31 million | 17.15 |
Robinhood Markets has higher revenue and earnings than its peers. Robinhood Markets is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Robinhood Markets has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Robinhood Markets’ peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.
Institutional & Insider Ownership
93.3% of Robinhood Markets shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 13.5% of Robinhood Markets shares are held by insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Robinhood Markets and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Robinhood Markets | 39.04% | 21.49% | 4.16% |
| Robinhood Markets Competitors | 316.00% | 10.03% | 3.52% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Robinhood Markets and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Robinhood Markets | 1 | 6 | 28 | 1 | 2.81 |
| Robinhood Markets Competitors | 5574 | 20179 | 22520 | 647 | 2.37 |
Robinhood Markets presently has a consensus target price of $126.45, suggesting a potential upside of 49.50%. As a group, “Capital Markets” companies have a potential upside of 23.12%. Given Robinhood Markets’ stronger consensus rating and higher probable upside, equities analysts clearly believe Robinhood Markets is more favorable than its peers.
Summary
Robinhood Markets beats its peers on 12 of the 13 factors compared.
About Robinhood Markets
Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.
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