Robinhood Markets, Inc. (HOOD) vs Interactive Brokers Group, Inc. (IBKR)

Robinhood Markets, Inc. and Interactive Brokers Group, Inc. are both Capital Markets companies. Robinhood Markets, Inc. is the larger, with a market value of $109.1B against $40.9B — 2.7× the size. Interactive Brokers Group, Inc. trades at the lower P/E: 35.3× against 51.7×. Robinhood Markets, Inc. grew revenue faster over the last twelve months: 38.3% against 21.3%. Robinhood Markets, Inc. has the higher net margin (42.0% vs 16.4%) and the higher return on invested capital (34.9% vs 0.00%). Across the 21 metrics below, Interactive Brokers Group, Inc. leads on 11 and Robinhood Markets, Inc. on 10.

Valuation

Metric HOOD IBKR Capital Markets median
P/E 51.69 35.25 15.78
P/S 21.76 5.82 2.32
P/B 11.25 1.80 1.89
Price to free cash flow 603.04 2.52 6.25
EV/EBITDA 43.14 n/m 8.87
EV/Sales 20.65 (12.76) 2.28
Earnings yield 1.93% 2.84% (3.77%)
Free cash flow yield 0.17% 39.64% (1.49%)

Profitability

Metric HOOD IBKR Capital Markets median
Gross margin 95.24% 93.72% 62.80%
Operating margin 46.03% 78.19% 0.00%
Net margin 42.01% 16.41% (0.55%)
Free cash flow margin 3.61% 230.72% 0.00%
Return on equity 23.53% 5.52% 0.00%
Return on assets 4.51% 0.53% 0.00%
Return on invested capital 34.93% 0.00% 0.00%

Growth

Metric HOOD IBKR Capital Markets median
Revenue growth (TTM) 38.27% 21.28% 21.02%
EPS growth (last fiscal year) 31.41% 28.14% —
Revenue growth, 5-year CAGR 36.10% 22.84% 18.16%
Net income growth, 5-year CAGR 206.16% 38.23% 0.00%

Health

Metric HOOD IBKR Capital Markets median
Debt to equity 2.38 0.00 0.08
Current ratio 1.22 1.09 1.51
Net debt to EBITDA (2.10) (20.66) (0.24)

Dividend

Metric HOOD IBKR Capital Markets median
Dividend yield — 0.42% 2.20%
Payout ratio 0.00 0.08 0.00

Size

Metric HOOD IBKR Capital Markets median
Market cap 109.14b 40.91b 724.58m

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