HOOD vs. LPLA, BEN, ETFC, HLI, IBKR, RJF, NMR, JEF, SEIC, and SF
Should you be buying Robinhood Markets stock or one of its competitors? The main competitors of Robinhood Markets include LPL Financial (LPLA), Franklin Resources (BEN), E*TRADE Financial (ETFC), Houlihan Lokey (HLI), Interactive Brokers Group (IBKR), Raymond James (RJF), Nomura (NMR), Jefferies Financial Group (JEF), SEI Investments (SEIC), and Stifel Financial (SF). These companies are all part of the "finance" sector.
LPL Financial (NASDAQ:LPLA) and Robinhood Markets (NASDAQ:HOOD) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, media sentiment, profitability, analyst recommendations, institutional ownership, earnings, valuation, dividends and community ranking.
LPL Financial presently has a consensus target price of $276.20, indicating a potential downside of 1.00%. Robinhood Markets has a consensus target price of $19.75, indicating a potential downside of 16.67%. Given Robinhood Markets' stronger consensus rating and higher possible upside, equities research analysts plainly believe LPL Financial is more favorable than Robinhood Markets.
LPL Financial received 425 more outperform votes than Robinhood Markets when rated by MarketBeat users. Likewise, 58.32% of users gave LPL Financial an outperform vote while only 29.27% of users gave Robinhood Markets an outperform vote.
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.
95.7% of LPL Financial shares are owned by institutional investors. Comparatively, 93.3% of Robinhood Markets shares are owned by institutional investors. 1.0% of LPL Financial shares are owned by company insiders. Comparatively, 20.0% of Robinhood Markets shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
In the previous week, Robinhood Markets had 29 more articles in the media than LPL Financial. MarketBeat recorded 37 mentions for Robinhood Markets and 8 mentions for LPL Financial. Robinhood Markets' average media sentiment score of 1.41 beat LPL Financial's score of 0.56 indicating that LPL Financial is being referred to more favorably in the media.
LPL Financial has a net margin of 9.71% compared to LPL Financial's net margin of 6.22%. Robinhood Markets' return on equity of 55.22% beat LPL Financial's return on equity.
LPL Financial has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Robinhood Markets has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.
Summary
LPL Financial beats Robinhood Markets on 12 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HOOD and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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