Robinhood Markets (NASDAQ:HOOD ) and Northern Star Investment Corp. II (NYSE:NSTB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Robinhood Markets and Northern Star Investment Corp. II's net margins, return on equity and return on assets.
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Net Margins | Return on Equity | Return on Assets | |
Robinhood Markets | -131.63% | -8.40% | -2.58% |
Northern Star Investment Corp. II | N/A | -113.97% | 5.99% |
Valuation & Earnings
This table compares Robinhood Markets and Northern Star Investment Corp. II'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 | $1.36 billion | 6.41 | -$1.03 billion | ($6.99) | -1.39 |
Northern Star Investment Corp. II | N/A | N/A | $3.15 million | N/A | N/A |
Northern Star Investment Corp. II has lower revenue, but higher earnings than Robinhood Markets.
Volatility & Risk
Robinhood Markets has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Northern Star Investment Corp. II has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
Institutional and Insider Ownership
58.8% of Robinhood Markets shares are owned by institutional investors. Comparatively, 93.8% of Northern Star Investment Corp. II shares are owned by institutional investors. 15.3% of Robinhood Markets shares are owned by insiders. Comparatively, 20.0% of Northern Star Investment Corp. II shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Robinhood Markets and Northern Star Investment Corp. II, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Robinhood Markets | 3 | 5 | 3 | 0 | 2.00 |
Northern Star Investment Corp. II | 0 | 0 | 0 | 0 | N/A |
Robinhood Markets presently has a consensus price target of $11.75, suggesting a potential upside of 21.01%. Given Robinhood Markets' higher probable upside, equities analysts plainly believe Robinhood Markets is more favorable than Northern Star Investment Corp. II.
About Robinhood Markets
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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 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; lists and alerts, which allow users to create custom watchlists and alerts to monitor securities, ETFs, and cryptocurrencies, as well as cash management services; and offers First trade recommendations to all new customers who have yet to place a trade. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.
About Northern Star Investment Corp. II
Northern Star Investment Corp. II does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Northern Star Investment Corp. II was incorporated in 2020 and is based in New York, New York.
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