Robinhood Markets, Inc. (HOOD) vs LPL Financial Holdings Inc. (LPLA)

Robinhood Markets, Inc. and LPL Financial Holdings Inc. are both Capital Markets companies. Robinhood Markets, Inc. is the larger, with a market value of $109.1B against $23.8B — 4.6× the size. LPL Financial Holdings Inc. trades at the lower P/E: 25.0× against 51.7×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 38.3%. Robinhood Markets, Inc. has the higher net margin (42.0% vs 5.13%) and the higher return on invested capital (34.9% vs 11.0%). Across the 21 metrics below, Robinhood Markets, Inc. leads on 11 and LPL Financial Holdings Inc. on 10.

Valuation

Metric HOOD LPLA Capital Markets median
P/E 51.69 24.97 15.78
P/S 21.76 1.28 2.32
P/B 11.25 4.36 1.89
Price to free cash flow 603.04 n/m 6.25
EV/EBITDA 43.14 11.78 8.87
EV/Sales 20.65 1.50 2.28
Earnings yield 1.93% 4.00% (3.77%)
Free cash flow yield 0.17% (3.71%) (1.49%)

Profitability

Metric HOOD LPLA Capital Markets median
Gross margin 95.24% 31.85% 62.80%
Operating margin 46.03% 9.06% 0.00%
Net margin 42.01% 5.13% (0.55%)
Free cash flow margin 3.61% (4.75%) 0.00%
Return on equity 23.53% 18.59% 0.00%
Return on assets 4.51% 5.40% 0.00%
Return on invested capital 34.93% 11.01% 0.00%

Growth

Metric HOOD LPLA Capital Markets median
Revenue growth (TTM) 38.27% 38.82% 21.02%
EPS growth (last fiscal year) 31.41% (22.17%) —
Revenue growth, 5-year CAGR 36.10% 23.68% 18.16%
Net income growth, 5-year CAGR 206.16% 12.80% 0.00%

Health

Metric HOOD LPLA Capital Markets median
Debt to equity 2.38 1.30 0.08
Current ratio 1.22 2.39 1.51
Net debt to EBITDA (2.10) 1.87 (0.24)

Dividend

Metric HOOD LPLA Capital Markets median
Dividend yield — 0.53% 2.20%
Payout ratio 0.00 0.08 0.00

Size

Metric HOOD LPLA Capital Markets median
Market cap 109.14b 23.84b 724.58m

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