Robinhood Markets Inc (HOOD)vsRoyal Bank of Canada (RY)
HOOD
Robinhood Markets Inc
$86.56
-0.05%
FINANCIAL SERVICES · Cap: $94.08B
RY
Royal Bank of Canada
$209.51
-0.29%
FINANCIAL SERVICES · Cap: $291.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 1325% more annual revenue ($65.72B vs $4.61B). HOOD leads profitability with a 41.1% profit margin vs 33.7%. RY appears more attractively valued with a PEG of 2.34. RY earns a higher WallStSmart Score of 67/100 (B-).
HOOD
Buy60
out of 100
Grade: C+
RY
Strong Buy67
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 41 of every $100 in revenue as profit
Strong operational efficiency at 38.5%
Large-cap with strong market position
Every $100 of equity generates 20 in profit
15.1% revenue growth
Generating 1.2B in free cash flow
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Generating 20.8B in free cash flow
16.1% revenue growth
Earnings expanding 27.5% YoY
Areas to Watch
Trading at 8.4x book value
2.7% earnings growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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 : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.
Bear Case : HOOD
The primary concerns for HOOD are Price/Book, EPS Growth, Debt/Equity. A P/E of 51.5x leaves little room for execution misses.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
HOOD carries more volatility with a beta of 2.34 — expect wider price swings.
RY is growing revenue faster at 16.1% — sustainability is the question.
RY generates stronger free cash flow (20.8B), providing more financial flexibility.
Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RY scores higher overall (67/100 vs 60/100), backed by strong 33.7% margins and 16.1% 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 →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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