WallStSmart

Robinhood Markets Inc (HOOD)vsLPL Financial Holdings Inc (LPLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

LPL Financial Holdings Inc generates 289% more annual revenue ($19.20B vs $4.93B). HOOD leads profitability with a 42.0% profit margin vs 5.2%. LPLA appears more attractively valued with a PEG of 0.53. LPLA earns a higher WallStSmart Score of 74/100 (B).

HOOD

Strong Buy

72

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.3Quality: 3.5
Piotroski: 3/9Altman Z: 0.65

LPLA

Strong Buy

74

out of 100

Grade: B

Growth: 10.0Profit: 6.0Value: 6.3Quality: 6.5
Piotroski: 2/9Altman Z: 2.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HOOD6 strengths · Avg: 9.3/10
Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
43.9%10/10

Strong operational efficiency at 43.9%

Revenue GrowthGrowth
32.3%10/10

Revenue surging 32.3% year-over-year

Market CapQuality
$84.07B9/10

Large-cap with strong market position

Return on EquityProfitability
20.4%9/10

Every $100 of equity generates 20 in profit

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

LPLA3 strengths · Avg: 8.7/10
Revenue GrowthGrowth
36.4%10/10

Revenue surging 36.4% year-over-year

PEG RatioValuation
0.538/10

Growing faster than its price suggests

EPS GrowthGrowth
39.4%8/10

Earnings expanding 39.4% YoY

Areas to Watch

HOOD4 concerns · Avg: 3.8/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Debt/EquityHealth
1.443/10

Elevated debt levels

LPLA4 concerns · Avg: 3.3/10
P/E RatioValuation
28.3x4/10

Moderate valuation

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 42.0% and operating margin at 43.9%. Revenue growth of 32.3% demonstrates continued momentum.

Bull Case : LPLA

The strongest argument for LPLA centers on Revenue Growth, PEG Ratio, EPS Growth. Revenue growth of 36.4% demonstrates continued momentum. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bear Case : HOOD

The primary concerns for HOOD are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : LPLA

The primary concerns for LPLA are P/E Ratio, Profit Margin, Debt/Equity.

Key Dynamics to Monitor

HOOD profiles as a growth stock while LPLA is a hypergrowth play — different risk/reward profiles.

HOOD carries more volatility with a beta of 2.32 — expect wider price swings.

LPLA is growing revenue faster at 36.4% — sustainability is the question.

HOOD generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

LPLA scores higher overall (74/100 vs 72/100) and 36.4% revenue growth. Both earn "Strong Buy" and "Strong 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.

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LPL Financial Holdings Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

LPL Financial Holdings Inc., provides an integrated platform of brokerage and investment advisory services to independent financial advisers and financial advisers at financial institutions in the United States. The company is headquartered in San Diego, California.

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