LIVE
HOOD
Robinhood Markets, Inc. · Financial Services
$108.15
+45.83% this month
VERSUS
⟷
COMPARE
SCHW
Charles Schwab Corporation · Financial Services
$91.70
-0.12% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
HOOD
1
SCHW
3
Comparison scoreboard
SCHW LEADS 3/5AI Score
HOOD 41.3
SCHW ✓51.4
1Y Return
HOOD ✓+38.03%
SCHW +3.08%
Fwd P/E
HOOD 37.37
SCHW ✓12.56
Target Up.
HOOD -6.47%
SCHW ✓+27.39%
Op. Margin
HOOD N/A
SCHW 49.35%
Metrics last refreshed: 6/20/2026
Quick take
HOOD vs SCHW Stock Comparison: AI Score, Valuation, Performance and Upside
HOOD and SCHW are both US retail brokerages but at vastly different scale. Schwab manages $9T+ in client assets and earns NII from its banking operations. Robinhood has tens of millions of younger, lower-balance users and depends on PFOF, crypto, and NII. Schwab is the incumbent value play with interest rate sensitivity; Robinhood is the fintech disruptor with a younger demographic and regulatory risk.
HOOD vs SCHW — Robinhood (the mobile-first fintech disruptor democratizing retail trading for younger investors via PFOF, crypto, and Gold subscriptions) versus Charles Schwab (the $9T+ AUC full-service brokerage and RIA custodian generating net interest income from its banking subsidiary as the dominant retail wealth platform).
Live analysis · updated 6/20/2026
SCHW holds the edge across 3 of 5 key metrics in this comparison. HOOD has delivered stronger 1-year price return (+38.03% vs +3.08%), though SCHW trades at the lower forward P/E (12.56x vs 37.37x). Analyst consensus implies meaningfully more upside for SCHW (+27.39%) than for HOOD (-6.47%).
Normalized 1Y performance
HOOD
SCHW
Recent returns
HOOD
SCHW
Analyst price targets & sentiment
HOOD · 24 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.9/5.0)
Price target range
analyst low$52.00
analyst high$155.00
analyst mean$101.15
current price$108.15
-6.5% upside to analyst mean
SCHW
Price target range
analyst mean$116.05
current price$91.70
+27.4% upside to analyst mean
Who should consider this stock?
HOOD may suit investors who:
- →believe Robinhood's demographic advantage — onboarding millennial/Gen-Z investors early — creates a multi-decade compounding customer base as those users grow their wealth
- →see crypto trading volumes as structural revenue growth as retail and institutional crypto adoption expands on Robinhood's platform
- →value Robinhood's NII growth from rising rates and margin lending reducing PFOF dependency risk over time
- →are comfortable with PFOF regulatory risk, lower average account balances, and paying a growth premium vs Schwab's value-oriented multiple
SCHW may suit investors who:
- →prefer the dominant US retail brokerage with $9T+ AUC, #1 RIA custody position, and structural scale advantages from the TD Ameritrade merger
- →value Schwab's interest rate sensitivity as a positive — higher-for-longer rates benefit NIM significantly on a large base of client cash sweep balances
- →want dividend income and proven earnings power vs Robinhood's evolving profitability profile
- →are comfortable with cash sorting headwinds compressing near-term NIM and multi-year TD Ameritrade client migration integration costs
Performance & AI score
| Metric | HOOD | SCHW |
|---|---|---|
| AI score | 41.3 | 51.4 |
| AI rank | #965 | #376 |
| Latest close | $108.15 | $91.70 |
| 1M return | +45.83% | -0.12% |
| 6M return | -6.61% | -5.08% |
| 1Y return | +38.03% | +3.08% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HOOD | SCHW |
|---|---|---|
| 1Y ago | $13.8K (+38.0%) started 2025-06-18 | $10.2K (+2.0%) started 2025-06-18 |
| 5Y ago | $31.06K (+210.6%) started 2021-07-29 | $14.06K (+40.6%) started 2021-06-21 |
| 10Y ago | $31.06K (+210.6%) started 2021-07-29 | $40.55K (+305.5%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | HOOD | SCHW |
|---|---|---|
| Market cap | $97.39B | $158.44B |
| Trailing P/E | 52.50 | 18.11 |
| Forward P/E | 37.37 | 12.56 |
| Price/Sales | 21.11 | N/A |
| EV/Revenue | 17.73 | 5.17 |
| Analyst target | $101.15 | $116.05 |
| Target upside | -6.47% | +27.39% |
Growth, profitability & risk
| Metric | HOOD | SCHW |
|---|---|---|
| Revenue growth | 15.10% | 15.80% |
| Earnings growth | 2.70% | 38.60% |
| EPS growth | +2.70% | +38.60% |
| FCF margin | N/A | N/A |
| Operating margin | N/A | 49.35% |
| Profit margin | 41.12% | 37.99% |
| ROIC proxy | 21.46% | 19.08% |
| Return on equity | 21.46% | 19.08% |
| Dividend yield | 0.00% | 1.41% |
| Beta | 2.35 | 0.77 |
| Debt/equity | 140.48 | 120.77 |
| Current ratio | 1.11 | 0.63 |
| Quick ratio | 1.07 | 0.63 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
HOOD max drawdown57.26%
SCHW max drawdown20.39%
HOOD max wkly drop28.21%
SCHW max wkly drop13.18%
5Y risk snapshot
HOOD max drawdown90.21%
SCHW max drawdown49.70%
HOOD max wkly drop28.21%
SCHW max wkly drop32.23%
10Y risk snapshot
HOOD max drawdown90.21%
SCHW max drawdown51.08%
HOOD max wkly drop28.21%
SCHW max wkly drop32.23%
Performance metrics by period
| Period | Metric | HOOD | SCHW |
|---|---|---|---|
| 1Y | Growth | +38.03% | +1.99% |
| CAGR | +38.06% | +1.99% | |
| Sharpe ratio | 0.75 | 0.02 | |
| Max drawdown | 57.26% | 20.39% | |
| Max daily drop | 13.24% | 7.63% | |
| Max wkly drop | 28.21% | 13.18% | |
| 5Y | Growth | +210.60% | +33.03% |
| CAGR | +26.10% | +5.88% | |
| Sharpe ratio | 0.61 | 0.20 | |
| Max drawdown | 90.21% | 49.70% | |
| Max daily drop | 27.59% | 12.77% | |
| Max wkly drop | 28.21% | 32.23% | |
| 10Y | Growth | +210.60% | +259.05% |
| CAGR | +26.10% | +13.64% | |
| Sharpe ratio | 0.61 | 0.42 | |
| Max drawdown | 90.21% | 51.08% | |
| Max daily drop | 27.59% | 12.77% | |
| Max wkly drop | 28.21% | 32.23% |
Business comparison
| Category | HOOD | SCHW |
|---|---|---|
| Company | Robinhood Markets, Inc. | Charles Schwab Corporation |
| Sector | Financial Services | Financial Services |
| Industry | N/A | N/A |
| Core business | Robinhood is a retail fintech brokerage built on commission-free trading, fractional shares, and a mobile-first UX targeting younger investors. Revenue comes primarily from payment for order flow (PFOF), net interest income on cash and margin lending, and Robinhood Gold subscriptions. Robinhood has expanded into crypto trading, retirement accounts, and credit cards. The company went public in July 2021 after democratizing retail trading during the 2020-2021 meme stock era. | Charles Schwab is the largest US retail brokerage by assets under custody ($9T+), offering brokerage, banking, wealth management, and advisory services. Schwab completed the TD Ameritrade acquisition in 2020, becoming the dominant retail brokerage. Revenue comes from net interest income (primary), asset management fees, and trading commissions. Schwab's bank subsidiary earns spread income on client cash sweeps. The company serves retail investors, independent RIAs, and institutional clients. |
| Investor focus | Investors monitor Robinhood's monthly active users, ARPU trends, crypto trading volumes, net interest income from higher rates, and path to expanding beyond PFOF-dependent revenue. | Investors focus on Schwab's net interest margin, cash sorting trends, RIA custody market share, and expense management post-TD Ameritrade integration. |
HOOD strengths
- →Mobile-first millennial/Gen-Z user base: Robinhood has onboarded tens of millions of younger investors who may grow assets over decades — long-term customer acquisition advantage vs incumbents
- →Crypto leadership among retail brokers: Robinhood captures significant retail crypto volume with margin for high-volatility trading periods like Bitcoin ETF launches
- →Net interest income expansion: higher interest rates improved Robinhood's NII from cash sweep and margin lending — reducing PFOF revenue dependency over time
SCHW strengths
- →$9T+ assets under custody: Schwab's scale creates enormous NII opportunity and fee revenue — the TD Ameritrade integration created the dominant retail brokerage with network effects
- →RIA custody leadership: Schwab is the largest custodian for independent RIAs — a high-quality, growing wealth management channel with sticky fee revenue
- →Banking integration enables NIM: Schwab Bank collects spread income on billions in client cash — NII is the largest revenue contributor benefiting from higher interest rates
Risks to watch — HOOD
- →PFOF regulatory risk: the SEC has proposed banning payment for order flow — a core Robinhood revenue stream — which would force significant business model restructuring
- →Lower average account balances: Robinhood's average account size is far below Schwab's, limiting revenue per user for wealth management expansion
- →Brand associated with speculative trading: meme stock and crypto association limits Robinhood's ability to attract older, wealthier customers more valuable to wealth management
Risks to watch — SCHW
- →Cash sorting headwinds: clients moved billions from low-yield Schwab Bank sweeps to money market funds — significantly compressing NIM in 2023-2024
- →Interest rate sensitivity: Schwab's earnings are heavily tied to rate levels — Fed rate cuts create NII headwinds on a large base
- →TD Ameritrade integration complexity: multi-year client migration challenge — Schwab transferred TD clients and closed redundant accounts through 2024
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