Robinhood Markets (HOOD) Competitors

Robinhood Markets (NASDAQ:HOOD) and LPL Financial (NASDAQ:LPLA) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their media sentiment, community ranking, analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Which has more volatility and risk, HOOD or LPLA?

Robinhood Markets has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Do institutionals and insiders believe in HOOD or LPLA?

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, 1.0% of LPL Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Is HOOD or LPLA more profitable?

Robinhood Markets has a net margin of 21.80% compared to LPL Financial's net margin of 8.73%. LPL Financial's return on equity of 49.47% beat Robinhood Markets' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Robinhood Markets	21.80%	7.52%	1.29%
LPL Financial	8.73%	49.47%	10.63%

Does the MarketBeat Community prefer HOOD or LPLA?

LPL Financial received 424 more outperform votes than Robinhood Markets when rated by MarketBeat users. Likewise, 58.16% of users gave LPL Financial an outperform vote while only 31.68% of users gave Robinhood Markets an outperform vote.

Company	Underperform	Outperform
Robinhood Markets	Outperform Votes 64 31.68%	Underperform Votes 138 68.32%
LPL Financial	Outperform Votes 488 58.16%	Underperform Votes 351 41.84%

Do analysts prefer HOOD or LPLA?

Robinhood Markets presently has a consensus price target of $27.34, indicating a potential downside of 22.41%. LPL Financial has a consensus price target of $286.92, indicating a potential downside of 8.78%. Given LPL Financial's stronger consensus rating and higher probable upside, analysts clearly believe LPL Financial is more favorable than Robinhood Markets.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robinhood Markets	1 Sell rating(s)	6 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.50
LPL Financial	1 Sell rating(s)	4 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.57

Which has higher valuation and earnings, HOOD or LPLA?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Robinhood Markets	$2.41B	12.94	-$541M	$0.59	59.73
LPL Financial	$10.05B	2.34	$1.07B	$13.30	23.65

Does the media refer more to HOOD or LPLA?

In the previous week, Robinhood Markets had 18 more articles in the media than LPL Financial. MarketBeat recorded 33 mentions for Robinhood Markets and 15 mentions for LPL Financial. LPL Financial's average media sentiment score of 1.20 beat Robinhood Markets' score of 0.59 indicating that LPL Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Robinhood Markets	11 Very Positive mention(s)	10 Positive mention(s)	9 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
LPL Financial	12 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

LPL Financial beats Robinhood Markets on 11 of the 17 factors compared between the two stocks.