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 $70.6B against $33.0B — 2.1× the size. Interactive Brokers Group, Inc. trades at the lower P/E: 27.7× against 35.8×. Robinhood Markets, Inc. grew revenue faster over the last twelve months: 20.9% against 19.7%. Robinhood Markets, Inc. has the higher net margin (39.0% vs 16.5%) and the higher return on invested capital (47.7% vs 0.00%). Across the 20 metrics below, Robinhood Markets, Inc. leads on 11 and Interactive Brokers Group, Inc. on 9.

Valuation

Metric HOOD IBKR Capital Markets median
P/E 35.76 27.73 14.35
P/S 13.97 4.63 2.07
P/B 7.04 1.94 1.36
Price to free cash flow 23.90 2.08 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 2.80% 3.61% (8.28%)
Free cash flow yield 4.18% 48.01% (1.12%)

Profitability

Metric HOOD IBKR Capital Markets median
Gross margin 95.14% 93.36% 68.15%
Operating margin 45.65% 77.94% 0.00%
Net margin 39.04% 16.53% (0.34%)
Free cash flow margin 58.44% 0.00% 0.00%
Return on equity 21.28% 6.45% 0.00%
Return on assets 3.98% 0.53% 0.00%
Return on invested capital 47.67% 0.00% 0.00%

Growth

Metric HOOD IBKR Capital Markets median
Revenue growth (TTM) 20.88% 19.72% 19.72%
EPS growth (last fiscal year) 31.41% 28.14% 16.79%
Revenue growth, 5-year CAGR 36.10% 22.84% 17.41%
Net income growth, 5-year CAGR 206.16% 38.23% 0.00%

Health

Metric HOOD IBKR Capital Markets median
Debt to equity 2.20 0.00 0.07
Current ratio 1.24 1.09 1.51
Net debt to EBITDA (2.10) (20.66) (0.03)

Dividend

Metric HOOD IBKR Capital Markets median
Dividend yield — 0.46% 1.58%
Payout ratio — 0.13 0.19

Size

Metric HOOD IBKR Capital Markets median
Market cap 70.59b 32.95b 527.01m

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