Robinhood Markets, Inc.
Robinhood Markets, Inc. operates financial services platform in the United States. The company's platform allows users to invest in stocks, exchange-traded funds (ETFs), and American depository receipts. It offers fractional trading, recurring investments, access to investing on margin, fully-paid s…
What to know about HOOD
Robinhood Markets, Inc. is a large Financial Services company with a mixed financial profile. It scores well on profitability and size, but risk is worth keeping an eye on.
Should you consider HOOD?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Robinhood Markets, Inc. is a large-cap Financial Services company with a mixed overall financial profile — it ranks near the bottom of Financial Services stocks (58 of 70).
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Profit margins are a clear strength, though the balance sheet warrants a closer look — make sure the debt levels are manageable.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Financial Services sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how HOOD compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 52.50 | Below avg |
| Forward P/E | 38.05 | Below avg |
| PEG Ratio | 2.71 | Below avg |
| Price to Sales | 21.11 | Below avg |
| Price to Book | 10.46 | Below avg |
| EV/EBITDA | — | N/A |
| Earnings Yield | 1.90% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 92.24% | Top 25% |
| Operating Margin | 38.52% | Top 25% |
| Net Profit Margin | 41.12% | Top 25% |
| Return on Equity | 21.46% | Above avg |
| Return on Invested Capital | 5.19% | Average |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 15.10% | Above avg |
| Revenue Growth (3Y CAGR) | 48.79% | Top 25% |
| EPS Growth (YoY) | 2.70% | Average |
| Free Cash Flow Growth | -865.22% | Below avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.11 | Average |
| Debt to Equity | 1.40 | Average |
| Interest Coverage | — | N/A |
| Altman Z-Score | 2.47 | Average |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 3.05% | Average |
| OCF to Sales | 65.77% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 2.35 | Below avg |
| Volatility (30-Day) | 76.61% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 4.40% | Average |
| Avg. Analyst Rating | 1.89 | Above avg |
| Target Upside % | -6.47% | Below avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 97.39B | Top 25% |
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