MarketAxess (NASDAQ:MKTX) and Robinhood Markets (NASDAQ:HOOD) Critical Comparison

MarketAxess (NASDAQ:MKTX) and Robinhood Markets (NASDAQ:HOOD) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Profitability

This table compares MarketAxess and Robinhood Markets’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MarketAxess 40.79% 29.87% 20.38%
Robinhood Markets N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for MarketAxess and Robinhood Markets, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MarketAxess 0 5 3 0 2.38
Robinhood Markets 1 5 7 0 2.46

MarketAxess presently has a consensus price target of $523.71, indicating a potential upside of 23.52%. Robinhood Markets has a consensus price target of $53.53, indicating a potential upside of 19.19%. Given MarketAxess’ higher possible upside, equities analysts plainly believe MarketAxess is more favorable than Robinhood Markets.

Institutional & Insider Ownership

94.4% of MarketAxess shares are owned by institutional investors. 2.2% of MarketAxess shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares MarketAxess and Robinhood Markets’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MarketAxess $689.13 million 23.37 $299.38 million $7.85 54.01
Robinhood Markets $958.83 million 40.07 $7.45 million N/A N/A

MarketAxess has higher earnings, but lower revenue than Robinhood Markets.

Summary

MarketAxess beats Robinhood Markets on 7 of the 11 factors compared between the two stocks.

About MarketAxess

MarketAxess Holdings, Inc. operates as an electronic trading platform that allows investment industry professionals to trade corporate bonds and other types of fixed-income instruments. It also provides data and analytical tools that help its clients to make trading decisions and facilitate the trading process by electronically communicating order information between trading counterparties. The firm’s patented trading technology allows institutional investor clients to request competitive, executable bids, or offers from multiple broker dealers simultaneously and to execute trades with the broker dealer of their choice. The company was founded by Richard M. Mcvey on April 11, 2000 and is headquartered in New York, NY.

About Robinhood Markets

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. The company also offers various learning and education solutions comprise Snacks, a digest of business news stories; Learn, which is a collection of approximately 650 articles, including guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free premium news from various sites, such as Barron’s, Reuters, and The Wall Street Journal; and lists, which allow users to create custom watchlists to monitor securities, ETFs, and cryptocurrencies, as well as cash management services. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

Receive News & Ratings for MarketAxess Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MarketAxess and related companies with MarketBeat.com's FREE daily email newsletter.