Robinhood Markets, Inc. (HOOD) vs The Charles Schwab Corporation (SCHW)

Robinhood Markets, Inc. and The Charles Schwab Corporation are both Capital Markets companies. The Charles Schwab Corporation is the larger, with a market value of $171.9B against $109.1B — 1.6× the size. The Charles Schwab Corporation trades at the lower P/E: 17.9× against 51.7×. Robinhood Markets, Inc. grew revenue faster over the last twelve months: 38.3% against 20.3%. Robinhood Markets, Inc. has the higher net margin (42.0% vs 37.4%) and the higher return on invested capital (34.9% vs 0.00%). Across the 22 metrics below, The Charles Schwab Corporation leads on 14 and Robinhood Markets, Inc. on 8.

Valuation

Metric HOOD SCHW Capital Markets median
P/E 51.69 17.94 15.78
P/S 21.76 6.60 2.32
P/B 11.25 3.91 1.89
Price to free cash flow 603.04 15.93 6.25
EV/EBITDA 43.14 7.41 8.87
EV/Sales 20.65 4.65 2.28
Earnings yield 1.93% 5.57% (3.77%)
Free cash flow yield 0.17% 6.28% (1.49%)

Profitability

Metric HOOD SCHW Capital Markets median
Gross margin 95.24% 100.00% 62.80%
Operating margin 46.03% 54.98% 0.00%
Net margin 42.01% 37.36% (0.55%)
Free cash flow margin 3.61% 41.46% 0.00%
Return on equity 23.53% 22.45% 0.00%
Return on assets 4.51% 1.99% 0.00%
Return on invested capital 34.93% 0.00% 0.00%

Growth

Metric HOOD SCHW Capital Markets median
Revenue growth (TTM) 38.27% 20.34% 21.02%
EPS growth (last fiscal year) 31.41% 55.52% —
Revenue growth, 5-year CAGR 36.10% 15.39% 18.16%
Net income growth, 5-year CAGR 206.16% 22.57% 0.00%

Health

Metric HOOD SCHW Capital Markets median
Debt to equity 2.38 0.45 0.08
Current ratio 1.22 0.64 1.51
Net debt to EBITDA (2.10) (4.52) (0.24)

Dividend

Metric HOOD SCHW Capital Markets median
Dividend yield — 1.73% 2.20%
Payout ratio 0.00 0.27 0.00

Size

Metric HOOD SCHW Capital Markets median
Market cap 109.14b 171.90b 724.58m

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