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HOOD vs. BGC: Which Fintech Brokerage Stock Has More Upside?
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Key Takeaways
Robinhood is expanding with acquisitions and new products to become a full-service global fintech platform.
BGC Group is focusing on institutional growth, boosting its energy segment with key strategic acquisitions.
HOOD shows stronger earnings momentum and trades at a lower price-to-tangible book ratio than BGC.
Robinhood Markets (HOOD - Free Report) and BGC Group (BGC - Free Report) operate in the financial services space. HOOD targets retail investors through its mass-market trading platform, while BGC caters to institutional clients with brokerage and financial technology solutions.
With the stock markets witnessing massive volatility and client activity, HOOD and BGC are expected to benefit from increased trading activities. As such, investors are bullish on both. Over the past six months, shares of HOOD have soared 74.4%, while BGC Group is up 5.1%. Further, the industry has jumped 6.4% in the same time frame.
HOOD & BGC Six-Month Price Performance
Image Source: Zacks Investment Research
So, the question arises: which fintech brokerage stock, Robinhood or BGC Group, offers greater upside in the evolving trading market? Let’s break down their fundamentals, financial performance, growth prospects and more before making any decision.
The Case for Robinhood
Robinhood became extremely popular among younger generations in early 2021, riding on the meme stock wave. Nonetheless, since its IPO in July 2021, a lot has happened on the business front. It has evolved from a brokerage firm primarily trading in digital assets to a more mature and diversified entity, striving to become a one-stop shop for building generational wealth.
In this context, HOOD has launched several initiatives to attract more clients and strengthen its market share. Some notable ones are Robinhood Legend (desktop trading platform) aimed at retail investors seeking more advanced trading tools; Robinhood Strategies, Robinhood Banking and Robinhood Cortex to boost the wealth management offerings; the prediction markets hub; and a credit card to expand in the consumer finance space.
Also, Robinhood is expanding via acquisitions, which are helping it to launch new businesses and complement existing ones. In June, the company acquired Bitstamp, a globally recognized cryptocurrency exchange, which will significantly enhance its crypto offerings. In May, it announced an agreement to buy WonderFi Technologies Inc., which will help deepen its presence in the Canadian digital asset market. In February 2025, it completed the buyout of TradePMR, a custodial and portfolio management platform specializing in services for Registered Investment Advisors.
Further, in July 2024, Robinhood acquired Pluto Capital Inc. With the integration of Pluto’s advanced capabilities, the company has revolutionized the investment experience for its users. These initiatives align with Robinhood’s ambition to become a global player as it looks to expand its presence beyond the Americas and Europe into the Asia-Pacific region. Hence, these efforts reflect HOOD’s ambition to become a global full-spectrum financial services provider.
HOOD Sales Estimates
Image Source: Zacks Investment Research
The Case for BGC Stock
BGC Group is a global financial services firm specializing in brokerage and financial technology. It offers voice/hybrid and fully electronic brokerage services. The company’s proprietary Fenics platform powers its electronic trading operations, enabling faster, more efficient transactions. The platform provides trading solutions, market data and analytics to institutional clients.
Following the 2023 spin-off of its commercial real estate arm, Newmark, BGC Group has sharpened its focus on its capital markets and fintech operations. This shift toward technology-driven services allows the company to enhance margins and reduce dependence on traditional, labor-intensive models.
In April, BGC Group acquired OTC Global Holdings, LP, one of the fastest-growing energy and commodities brokerage firms. This, along with the buyout of Sage Energy Partners, LP, an energy and environmental brokerage firm, last year, represents an advancement in the company's growth strategy, solidifying the Energy, Commodities and Shipping (ECS) business as the largest asset class within BGC. These acquisitions are expected to contribute more than $450 million in annual revenues and have positioned the company as a major player in the energy sector.
BGC Group is well-positioned to capitalize on growing environmental and energy transition trends and will keep benefiting from consistent global demand for oil, the single largest source of energy. As such, the company’s top-line growth is anticipated to be impressive. Over the last five years (ended 2024), the company’s revenues recorded a CAGR of 1.5%.
Other than the above-mentioned buyouts, BGC Group acquired ContiCap, Open Energy Group and Trident in 2023. These deals positioned the company as one of the leading global brokerage firms and bolstered its market share.
BGC Sales Estimates
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for HOOD & BGC?
Over the past 60 days, the Zacks Consensus Estimate for HOOD’s 2025 earnings has remained unchanged, while for 2026, it has been revised upward. The earnings estimates for 2025 and 2026 imply 12.8% and 21.3% growth, respectively.
Earnings Estimates for HOOD
Image Source: Zacks Investment Research
On the contrary, analysts are bearish on BGC Group’s prospects. The earnings estimates for 2025 and 2026 have been revised lower over the past two months. The consensus mark for BGC’s 2025 and 2026 earnings suggests a 19.2% and 18.2% rise for 2025 and 2026, respectively.
Earnings Estimates for BGC
Image Source: Zacks Investment Research
Robinhood & BGC Group: Valuation & Other Comparisons
Valuation-wise, HOOD is currently trading at the 12-month trailing price-to-tangible book (P/TB) of 8.74X. The BGC stock, on the other hand, is currently trading at the 12-month trailing P/TB of 12.53X.
HOOD & BGC P/TB Ratio
Image Source: Zacks Investment Research
Thus, HOOD is inexpensive compared with BGC Group.
BGC Group’s return on equity (ROE) of 46.98% is way higher than HOOD’s 15.42%. This reflects BGC’s efficient use of shareholder funds in generating profits.
ROE
Image Source: Zacks Investment Research
HOOD or BGC: Which Stock is the Better Bet?
Robinhood and BGC Group represent two distinct approaches within the fintech and brokerage space. HOOD is aggressively expanding its retail-focused ecosystem through innovation, acquisitions and global reach, positioning itself as a next-generation financial services platform. In contrast, BGC is reinforcing its dominance in institutional markets, especially in energy and commodities, leveraging its advanced trading technologies and strategic buyouts.
While BGC boasts higher returns on equity and a more stable institutional client base, HOOD is trading at a more attractive valuation and shows stronger earnings momentum. Further, Robinhood’s innovation-driven model offers a better upside in today’s evolving brokerage market.
Image: Bigstock
HOOD vs. BGC: Which Fintech Brokerage Stock Has More Upside?
Key Takeaways
Robinhood Markets (HOOD - Free Report) and BGC Group (BGC - Free Report) operate in the financial services space. HOOD targets retail investors through its mass-market trading platform, while BGC caters to institutional clients with brokerage and financial technology solutions.
With the stock markets witnessing massive volatility and client activity, HOOD and BGC are expected to benefit from increased trading activities. As such, investors are bullish on both. Over the past six months, shares of HOOD have soared 74.4%, while BGC Group is up 5.1%. Further, the industry has jumped 6.4% in the same time frame.
HOOD & BGC Six-Month Price Performance
Image Source: Zacks Investment Research
So, the question arises: which fintech brokerage stock, Robinhood or BGC Group, offers greater upside in the evolving trading market? Let’s break down their fundamentals, financial performance, growth prospects and more before making any decision.
The Case for Robinhood
Robinhood became extremely popular among younger generations in early 2021, riding on the meme stock wave. Nonetheless, since its IPO in July 2021, a lot has happened on the business front. It has evolved from a brokerage firm primarily trading in digital assets to a more mature and diversified entity, striving to become a one-stop shop for building generational wealth.
In this context, HOOD has launched several initiatives to attract more clients and strengthen its market share. Some notable ones are Robinhood Legend (desktop trading platform) aimed at retail investors seeking more advanced trading tools; Robinhood Strategies, Robinhood Banking and Robinhood Cortex to boost the wealth management offerings; the prediction markets hub; and a credit card to expand in the consumer finance space.
Also, Robinhood is expanding via acquisitions, which are helping it to launch new businesses and complement existing ones. In June, the company acquired Bitstamp, a globally recognized cryptocurrency exchange, which will significantly enhance its crypto offerings. In May, it announced an agreement to buy WonderFi Technologies Inc., which will help deepen its presence in the Canadian digital asset market. In February 2025, it completed the buyout of TradePMR, a custodial and portfolio management platform specializing in services for Registered Investment Advisors.
Further, in July 2024, Robinhood acquired Pluto Capital Inc. With the integration of Pluto’s advanced capabilities, the company has revolutionized the investment experience for its users. These initiatives align with Robinhood’s ambition to become a global player as it looks to expand its presence beyond the Americas and Europe into the Asia-Pacific region. Hence, these efforts reflect HOOD’s ambition to become a global full-spectrum financial services provider.
HOOD Sales Estimates
Image Source: Zacks Investment Research
The Case for BGC Stock
BGC Group is a global financial services firm specializing in brokerage and financial technology. It offers voice/hybrid and fully electronic brokerage services. The company’s proprietary Fenics platform powers its electronic trading operations, enabling faster, more efficient transactions. The platform provides trading solutions, market data and analytics to institutional clients.
Following the 2023 spin-off of its commercial real estate arm, Newmark, BGC Group has sharpened its focus on its capital markets and fintech operations. This shift toward technology-driven services allows the company to enhance margins and reduce dependence on traditional, labor-intensive models.
In April, BGC Group acquired OTC Global Holdings, LP, one of the fastest-growing energy and commodities brokerage firms. This, along with the buyout of Sage Energy Partners, LP, an energy and environmental brokerage firm, last year, represents an advancement in the company's growth strategy, solidifying the Energy, Commodities and Shipping (ECS) business as the largest asset class within BGC. These acquisitions are expected to contribute more than $450 million in annual revenues and have positioned the company as a major player in the energy sector.
BGC Group is well-positioned to capitalize on growing environmental and energy transition trends and will keep benefiting from consistent global demand for oil, the single largest source of energy. As such, the company’s top-line growth is anticipated to be impressive. Over the last five years (ended 2024), the company’s revenues recorded a CAGR of 1.5%.
Other than the above-mentioned buyouts, BGC Group acquired ContiCap, Open Energy Group and Trident in 2023. These deals positioned the company as one of the leading global brokerage firms and bolstered its market share.
BGC Sales Estimates
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for HOOD & BGC?
Over the past 60 days, the Zacks Consensus Estimate for HOOD’s 2025 earnings has remained unchanged, while for 2026, it has been revised upward. The earnings estimates for 2025 and 2026 imply 12.8% and 21.3% growth, respectively.
Earnings Estimates for HOOD
Image Source: Zacks Investment Research
On the contrary, analysts are bearish on BGC Group’s prospects. The earnings estimates for 2025 and 2026 have been revised lower over the past two months. The consensus mark for BGC’s 2025 and 2026 earnings suggests a 19.2% and 18.2% rise for 2025 and 2026, respectively.
Earnings Estimates for BGC
Image Source: Zacks Investment Research
Robinhood & BGC Group: Valuation & Other Comparisons
Valuation-wise, HOOD is currently trading at the 12-month trailing price-to-tangible book (P/TB) of 8.74X. The BGC stock, on the other hand, is currently trading at the 12-month trailing P/TB of 12.53X.
HOOD & BGC P/TB Ratio
Image Source: Zacks Investment Research
Thus, HOOD is inexpensive compared with BGC Group.
BGC Group’s return on equity (ROE) of 46.98% is way higher than HOOD’s 15.42%. This reflects BGC’s efficient use of shareholder funds in generating profits.
ROE
Image Source: Zacks Investment Research
HOOD or BGC: Which Stock is the Better Bet?
Robinhood and BGC Group represent two distinct approaches within the fintech and brokerage space. HOOD is aggressively expanding its retail-focused ecosystem through innovation, acquisitions and global reach, positioning itself as a next-generation financial services platform. In contrast, BGC is reinforcing its dominance in institutional markets, especially in energy and commodities, leveraging its advanced trading technologies and strategic buyouts.
While BGC boasts higher returns on equity and a more stable institutional client base, HOOD is trading at a more attractive valuation and shows stronger earnings momentum. Further, Robinhood’s innovation-driven model offers a better upside in today’s evolving brokerage market.
Currently, BGC Group carries a Zacks Rank #4 (Sell), while HOOD has a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.