Head to Head Analysis: Robinhood Markets (NASDAQ:HOOD) and Galaxy Digital (NASDAQ:GLXY)

Galaxy Digital (NASDAQ:GLXY) and Robinhood Markets (NASDAQ:HOOD) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Risk and Volatility

Galaxy Digital has a beta of 5.38, suggesting that its share price is 438% more volatile than the S&P 500. Comparatively, Robinhood Markets has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500.

Earnings and Valuation

This table compares Galaxy Digital and Robinhood Markets”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galaxy Digital	$61.36 billion	0.10	-$241.35 million	($1.00)	-15.97
Robinhood Markets	$5.08 billion	14.99	$1.88 billion	$2.17	38.98

Robinhood Markets has lower revenue, but higher earnings than Galaxy Digital. Galaxy Digital is trading at a lower price-to-earnings ratio than Robinhood Markets, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Galaxy Digital	-0.89%	-10.30%	-2.73%
Robinhood Markets	39.04%	21.49%	4.16%

Insider & Institutional Ownership

93.3% of Robinhood Markets shares are held by institutional investors. 51.5% of Galaxy Digital shares are held by insiders. Comparatively, 13.5% of Robinhood Markets shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Galaxy Digital and Robinhood Markets, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galaxy Digital	0	3	11	0	2.79
Robinhood Markets	1	6	28	1	2.81

Galaxy Digital presently has a consensus price target of $33.96, indicating a potential upside of 112.64%. Robinhood Markets has a consensus price target of $126.45, indicating a potential upside of 49.50%. Given Galaxy Digital’s higher possible upside, equities research analysts clearly believe Galaxy Digital is more favorable than Robinhood Markets.

Summary

Robinhood Markets beats Galaxy Digital on 10 of the 14 factors compared between the two stocks.

About Galaxy Digital

Galaxy Digital is a financial services and investment management company focused on digital assets and blockchain technology. Its businesses include trading and other financial services for institutions, investment and asset management, and digital infrastructure, including data center and bitcoin mining operations. Founded in 2018 by Michael Novogratz, the company serves institutional clients and investors in the United States and other markets. Novogratz is Galaxy’s founder and chief executive officer.

About Robinhood Markets

Robinhood Markets, Inc. operates a digital financial services platform that gives customers access to investing and financial products through its website and mobile app. Its offerings include trading in stocks, exchange-traded funds, options and cryptocurrencies, as well as retirement accounts and cash-management services. Founded in 2013 by Vlad Tenev and Baiju Bhatt, Robinhood built its business around making financial services more accessible through a mobile-first platform. The company is headquartered in Menlo Park, California, and serves customers in the United States and select international markets.