Head-To-Head Review: Robinhood Markets (NASDAQ:HOOD) and Galaxy Digital (NASDAQ:GLXY)

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

Insider & Institutional Ownership

93.3% of Robinhood Markets shares are held by institutional investors. 13.5% of Robinhood Markets shares are held by insiders. Comparatively, 51.5% of Galaxy Digital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Robinhood Markets and Galaxy Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robinhood Markets	1	6	28	1	2.81
Galaxy Digital	1	2	11	0	2.71

Robinhood Markets presently has a consensus target price of $126.45, suggesting a potential upside of 56.28%. Galaxy Digital has a consensus target price of $35.29, suggesting a potential upside of 158.36%. Given Galaxy Digital’s higher probable upside, analysts plainly believe Galaxy Digital is more favorable than Robinhood Markets.

Profitability

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

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

Valuation & Earnings

This table compares Robinhood Markets and Galaxy Digital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Robinhood Markets	$4.47 billion	16.26	$1.88 billion	$2.17	37.29
Galaxy Digital	$61.36 billion	0.09	-$241.35 million	($1.00)	-13.66

Robinhood Markets has higher earnings, but lower revenue 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.

Summary

Robinhood Markets beats Galaxy Digital on 11 of the 15 factors compared between the two stocks.

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), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

About Galaxy Digital

Galaxy Digital Holdings Ltd. is a financial services and an investment management company, which engages in the digital asset, cryptocurrency, and block chain technology sectors. It operates through the following segments: Trading, Principal Investment, Asset Management, Investment Banking, Mining, and Corporate & Other. The Trading segment manages positions in cryptocurrency and other liquid digital assets contributed to the business at the outset and continues to invest and trade in those and related assets. The Principal Investment segment includes portfolio of private principal investments across the block chain ecosystem, including early- and later-stage equity, pre-launch network contributions, and other structured alternative investments. The Asset Management segment manages capital on behalf of third parties in exchange for management fees and performance-based compensation. The Investment Banking segment offers the spectrum of investment banking, including, but not limited to general corporate advisory, mergers and acquisition, transaction advisory, restructuring and capital rising. The Mining segment focuses to provide financial services for North American miners, through its partnerships. The Corporate & Other consists of the partnership’s unallocated corporate overhead and other unallocated costs not identifiable to any of the reportable segments. The company was founded by Michael Edward Novogratz on February 10, 2006 and is headquartered in New York, NY.