WallStSmart

Robinhood Markets Inc (HOOD)vsLM Funding America Inc (LMFA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Robinhood Markets Inc generates 59654% more annual revenue ($4.61B vs $7.72M). HOOD leads profitability with a 41.1% profit margin vs 0.0%. HOOD earns a higher WallStSmart Score of 56/100 (C).

HOOD

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 8.5Value: 4.7Quality: 3.5
Piotroski: 2/9Altman Z: 0.41

LMFA

Avoid

35

out of 100

Grade: F

Growth: 5.3Profit: 2.5Value: 5.0Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOOD5 strengths · Avg: 9.2/10
Profit MarginProfitability
41.1%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Market CapQuality
$65.64B9/10

Large-cap with strong market position

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

LMFA1 strengths · Avg: 10.0/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

Areas to Watch

HOOD4 concerns · Avg: 3.5/10
P/E RatioValuation
35.4x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
2.7%4/10

2.7% earnings growth

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

LMFA4 concerns · Avg: 2.5/10
Market CapQuality
$3.95M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Return on EquityProfitability
-84.0%2/10

ROE of -84.0% — below average capital efficiency

EPS GrowthGrowth
-89.4%2/10

Earnings declined 89.4%

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 41.1% and operating margin at 38.5%. Revenue growth of 15.1% demonstrates continued momentum.

Bull Case : LMFA

The strongest argument for LMFA centers on Price/Book.

Bear Case : HOOD

The primary concerns for HOOD are P/E Ratio, EPS Growth, Debt/Equity. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : LMFA

The primary concerns for LMFA are Market Cap, Profit Margin, Return on Equity.

Key Dynamics to Monitor

HOOD profiles as a growth stock while LMFA is a value play — different risk/reward profiles.

HOOD carries more volatility with a beta of 2.46 — expect wider price swings.

HOOD is growing revenue faster at 15.1% — sustainability is the question.

HOOD generates stronger free cash flow (631M), providing more financial flexibility.

Bottom Line

HOOD scores higher overall (56/100 vs 35/100), backed by strong 41.1% margins and 15.1% revenue growth. Both earn "Buy" and "Avoid" 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 pioneering fintech company that has transformed the retail investing landscape since its inception in 2013 by providing a commission-free trading platform accessible via an intuitive mobile app. The firm caters to a diverse user base, allowing access to a wide array of investment vehicles, including stocks, ETFs, options, and cryptocurrencies, while prioritizing financial literacy and inclusivity. By offering innovative features such as fractional shares and cash management solutions, Robinhood positions itself as a key player in the digital brokerage sector, appealing to a new generation of investors seeking efficient and transparent ways to engage with financial markets.

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LM Funding America Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

LM Funding America, Inc., through its subsidiary, LM Funding, LLC, is a specialized finance company. The company is headquartered in Tampa, Florida.

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