HOOD vs IBKR: Robinhood vs Interactive Brokers Stock Comparison: AI Score, Valuation, Performance and Upside
Robinhood is a retail-focused mobile-first broker targeting younger casual investors, while Interactive Brokers is a technology-driven global brokerage serving sophisticated traders and financial professionals. Robinhood competes on simplicity and crypto integration; IBKR wins on global market access, margin lending, and professional tools.
HOOD vs IBKR is retail simplicity for casual younger investors versus global sophisticated trading infrastructure — Robinhood wins if retail investor engagement and Gold subscriptions sustain growth; IBKR wins if institutional and sophisticated trader account growth compounds alongside margin income.
IBKR holds the edge across 5 of 5 key metrics in this comparison. IBKR leads on both 1-year return (+23.31%) and forward P/E quality (27.98x vs 32.48x for HOOD), a relatively favorable combination of momentum and valuation. On fundamentals, HOOD is growing revenue faster (32.30%), while IBKR maintains the higher operating margin (76.53%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for IBKR (+18.82%) than for HOOD (+15.80%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- believe Robinhood's younger demographic will grow its AUM as users accumulate wealth over time
- value Gold subscription recurring revenue as a buffer against PFOF regulatory risk
- want exposure to crypto trading integration and retirement account adoption as growth drivers
- prefer a higher-growth, higher-risk retail brokerage bet at a lower absolute valuation
- prefer sophisticated global trading infrastructure with 150+ market access
- value IBKR's margin lending income as a significant NII driver in high-rate environments
- want lower risk through a diverse client base of sophisticated traders and institutional accounts
- prefer a more profitable, established brokerage at a lower growth multiple than Robinhood
| Metric | HOOD | IBKR |
|---|---|---|
| AI scorei | 52.3 | 65.4 |
| AI ranki | #348 | #66 |
| Latest closei | $103.99 | $86.03 |
| 1M returni | -5.85% | -3.12% |
| 3M returni | -1.91% | -6.70% |
| 6M returni | +19.74% | +8.38% |
| 1Y returni | -22.48% | +23.31% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HOOD | IBKR |
|---|---|---|
| 1Y ago | $7.91K (-20.9%) started 2025-10-16 | $12.56K (+25.6%) started 2025-10-16 |
| 5Y ago | $25.58K (+155.8%) started 2021-10-18 | $48.05K (+380.5%) started 2021-10-18 |
| 10Y ago | $29.87K (+198.7%) started 2021-07-29 | $97.73K (+877.3%) started 2016-10-17 |
Hypothetical — past performance does not guarantee future results.
| Metric | HOOD | IBKR |
|---|---|---|
| Market capi | $95.79B | $151.62B |
| Trailing P/Ei | 47.14 | 35.31 |
| Forward P/Ei | 32.48 | 27.98 |
| Price/Salesi | N/A | N/A |
| EV/Revenuei | 18.68 | -4.06 |
| Analyst targeti | $123.38 | $105.74 |
| Target upsidei | +15.80% | +18.82% |
| Metric | HOOD | IBKR |
|---|---|---|
| Revenue growthi | 32.30% | 26.30% |
| Earnings growthi | 47.60% | 35.30% |
| EPS growthi | +47.60% | +35.30% |
| FCF margini | N/A | N/A |
| Operating margini | 43.88% | 76.53% |
| Profit margini | 42.01% | 16.47% |
| ROIC proxyi | 23.62% | 24.02% |
| Return on equityi | 23.62% | 24.02% |
| Dividend yieldi | N/A | 0.39% |
| Payout ratioi | 0.00% | 13.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 2.32 | 1.34 |
| Debt/equityi | 240.28 | 205.75 |
| Current ratioi | 1.12 | 1.09 |
| Quick ratioi | 1.07 | 1.09 |
Over the past year, HOOD and IBKR have moved moderately in the same direction (correlation of 0.68), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | HOOD | IBKR |
|---|---|---|---|
| 1Y | Growthi | -20.88% | +25.55% |
| CAGRi | -20.92% | +25.60% | |
| Volatilityi | 71.47% | 39.25% | |
| Sharpe ratioi | -0.04 | 0.66 | |
| Sortino ratioi | -0.06 | 1.00 | |
| Max drawdowni | 55.70% | 18.78% | |
| Current drawdowni | 29.30% | 12.38% | |
| Avg drawdowni | 31.26% | 6.59% | |
| Ulcer Indexi | 34.42% | 8.12% | |
| Max daily dropi | 13.24% | 7.79% | |
| Max wkly dropi | 28.21% | 11.20% | |
| 5Y | Growthi | +155.82% | +380.48% |
| CAGRi | +20.70% | +36.93% | |
| Volatilityi | 68.55% | 35.37% | |
| Sharpe ratioi | 0.55 | 0.94 | |
| Sortino ratioi | 0.83 | 1.39 | |
| Max drawdowni | 83.53% | 38.74% | |
| Current drawdowni | 31.79% | 12.38% | |
| Avg drawdowni | 49.61% | 9.18% | |
| Ulcer Indexi | 56.36% | 12.69% | |
| Max daily dropi | 19.79% | 13.01% | |
| Max wkly dropi | 28.21% | 17.05% | |
| 10Y | Growthi | +198.65% | +877.34% |
| CAGRi | +23.34% | +25.62% | |
| Volatilityi | 73.64% | 33.77% | |
| Sharpe ratioi | 0.58 | 0.71 | |
| Sortino ratioi | 0.92 | 1.04 | |
| Max drawdowni | 90.21% | 55.73% | |
| Current drawdowni | 31.79% | 12.38% | |
| Avg drawdowni | 58.83% | 15.61% | |
| Ulcer Indexi | 65.32% | 21.08% | |
| Max daily dropi | 27.59% | 13.01% | |
| Max wkly dropi | 28.21% | 19.03% |
| Category | HOOD | IBKR |
|---|---|---|
| Company | Robinhood Markets, Inc. | Interactive Brokers Group, Inc. |
| Sector | Financial Services | Financial Services |
| Industry | Capital Markets | Capital Markets |
| Core business | Commission-free retail investing platform for younger investors with stocks, options, ETFs, crypto, and new features including retirement accounts and credit cards. Robinhood earns revenue from payment for order flow (PFOF), interest on cash balances, and Gold subscription fees. | Electronic brokerage firm serving individual traders, hedge funds, family offices, and financial advisors with access to 150+ global markets, margin lending, and IBKR Prime prime brokerage services. |
| Investor focus | Monthly active user growth and reactivation, Gold subscribers, retirement account adoption, crypto revenue, and international expansion (UK, EU). | Client account growth (particularly international), net interest income from margin balances, institutional and advisor platform growth, and margin loan demand. |
- Robinhood democratized investing for younger retail investors with a mobile-first experience that traditional brokers couldn't match
- Robinhood Gold subscription provides recurring revenue independent of trading activity
- Crypto trading integration captures crypto-active users who prefer a single investment platform
- Interactive Brokers' global market access (150+ markets across 34 countries) is unmatched among retail brokers
- Low-cost, technology-first platform attracts sophisticated traders who execute high volumes across equities, options, futures, and forex
- IBKR benefits significantly from high interest rates through margin loan income and cash balance interest spreads
- PFOF regulatory risk — the SEC has proposed rules that could restrict or eliminate Robinhood's primary revenue mechanism
- Retail trading activity is cyclical — revenue falls significantly in market downturns and low-volatility periods
- User trust challenges following the 2021 GameStop trading restriction incident linger with some segments of retail investors
- Interactive Brokers has limited appeal for casual retail investors who find the platform complex
- IBKR's revenue is significantly interest-rate sensitive — NII declines materially in lower-rate environments
- Competition from Schwab, Fidelity, and Tastytrade for active trader market share
Compare more than two at a time
This page is a fixed writeup on HOOD and IBKR. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside HOOD and IBKR, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.
Full valuation workup with AI Score, Monte Carlo forecast, and bull/bear case — free preview, premium data from $3.99.