Return on Equity (ROE)
Higher than 73% of Financial Services sector peers
Updated 1078h ago
Sector Performance
73th percentileHOOD
20.6%
Sector Median
12.4%
Sector Avg
17.4%
Deep Analysis
Robinhood Markets, Inc. (HOOD) has a Return on Equity (ROE) of 20.6% as of May 2026.
This places HOOD in the 73th percentile of the Financial Services sector, which has a median Return on Equity (ROE) of 12.4% and a sector average of 17.4%. HOOD's Return on Equity (ROE) is 66.1% above the sector median, a significant divergence that warrants closer examination. In context: ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about HOOD?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does HOOD's Return on Equity (ROE) compare to its sector?
HOOD's Return on Equity (ROE) of 20.6% compares to a Financial Services sector median of 12.4%, placing it in the 73th percentile.
Who are HOOD's closest peers by Return on Equity (ROE)?
The closest Financial Services peers by Return on Equity (ROE) include: RF (11.9%), HSBC (11.6%), PNC (11.4%), GOLD (10.8%), PRU (10.7%).
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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20.6%
Sector Median
12.4%
Sector Avg
17.4%
How HOOD's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.