HOOD vs. LPLA, BEN, ETFC, HLI, IBKR, RJF, NMR, JEF, SEIC, and SF
Should you be buying Robinhood Markets stock or one of its competitors? The main competitors of Robinhood Markets include LPL Financial (LPLA), Franklin Resources (BEN), E*TRADE Financial (ETFC), Houlihan Lokey (HLI), Interactive Brokers Group (IBKR), Raymond James (RJF), Nomura (NMR), Jefferies Financial Group (JEF), SEI Investments (SEIC), and Stifel Financial (SF). These companies are all part of the "finance" sector.
Robinhood Markets (NASDAQ:HOOD) and LPL Financial (NASDAQ:LPLA) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, community ranking, risk, media sentiment and profitability.
LPL Financial has higher revenue and earnings than Robinhood Markets. LPL Financial is trading at a lower price-to-earnings ratio than Robinhood Markets, indicating that it is currently the more affordable of the two stocks.
Robinhood Markets presently has a consensus target price of $19.75, suggesting a potential downside of 5.50%. LPL Financial has a consensus target price of $276.20, suggesting a potential downside of 3.50%. Given LPL Financial's stronger consensus rating and higher possible upside, analysts plainly believe LPL Financial is more favorable than Robinhood Markets.
93.3% of Robinhood Markets shares are held by institutional investors. Comparatively, 95.7% of LPL Financial shares are held by institutional investors. 20.0% of Robinhood Markets shares are held by company insiders. Comparatively, 1.3% of LPL Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Robinhood Markets has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
In the previous week, Robinhood Markets had 24 more articles in the media than LPL Financial. MarketBeat recorded 35 mentions for Robinhood Markets and 11 mentions for LPL Financial. Robinhood Markets' average media sentiment score of 0.63 beat LPL Financial's score of 0.30 indicating that Robinhood Markets is being referred to more favorably in the media.
LPL Financial received 426 more outperform votes than Robinhood Markets when rated by MarketBeat users. Likewise, 58.32% of users gave LPL Financial an outperform vote while only 29.01% of users gave Robinhood Markets an outperform vote.
LPL Financial has a net margin of 9.71% compared to Robinhood Markets' net margin of 6.22%. LPL Financial's return on equity of 55.22% beat Robinhood Markets' return on equity.
Summary
LPL Financial beats Robinhood Markets on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HOOD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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