WallStSmart

Robinhood Markets Inc (HOOD)vsInteractive Brokers Group Inc (IBKR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Interactive Brokers Group Inc generates 39% more annual revenue ($7.06B vs $5.08B). HOOD leads profitability with a 39.0% profit margin vs 16.7%. IBKR appears more attractively valued with a PEG of 1.10. IBKR earns a higher WallStSmart Score of 66/100 (B-).

HOOD

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.65

IBKR

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 5.7Quality: 5.0
Piotroski: 2/9Altman Z: 0.39

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOOD4 strengths · Avg: 9.5/10
Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
48.1%10/10

Strong operational efficiency at 48.1%

Market CapQuality
$76.53B9/10

Large-cap with strong market position

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

IBKR4 strengths · Avg: 9.3/10
Operating MarginProfitability
77.7%10/10

Strong operational efficiency at 77.7%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Market CapQuality
$131.02B9/10

Large-cap with strong market position

Free Cash FlowQuality
$6.20B8/10

Generating 6.2B in free cash flow

Areas to Watch

HOOD4 concerns · Avg: 2.8/10
P/E RatioValuation
39.2x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-16.4%2/10

Earnings declined 16.4%

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

IBKR3 concerns · Avg: 3.0/10
P/E RatioValuation
29.4x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 39.0% and operating margin at 48.1%. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : IBKR

The strongest argument for IBKR centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 16.7% and operating margin at 77.7%. Revenue growth of 13.5% demonstrates continued momentum.

Bear Case : HOOD

The primary concerns for HOOD are P/E Ratio, Piotroski F-Score, EPS Growth. Debt-to-equity of 2.40 is elevated, increasing financial risk.

Bear Case : IBKR

The primary concerns for IBKR are P/E Ratio, Piotroski F-Score, Altman Z-Score.

Key Dynamics to Monitor

HOOD carries more volatility with a beta of 2.35 — expect wider price swings.

IBKR is growing revenue faster at 13.5% — sustainability is the question.

IBKR generates stronger free cash flow (6.2B), providing more financial flexibility.

Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

IBKR scores higher overall (66/100 vs 62/100), backed by strong 16.7% margins and 13.5% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Robinhood Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Robinhood Markets Inc (HOOD) is a leading fintech company revolutionizing retail investing since 2013 with its innovative, commission-free trading platform. By offering a diverse range of investment products—including stocks, ETFs, options, and cryptocurrencies—Robinhood caters to a broad demographic, particularly engaging younger investors. The company is committed to financial education and inclusivity, further solidified by its unique features like fractional shares and advanced cash management solutions. With a focus on transparency and efficiency, Robinhood is well-positioned as a key player in the evolving digital brokerage landscape.

Visit Website →

Interactive Brokers Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.

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