FUTU vs HOOD

For growth investors, Robinhood Markets, Inc.

(HOOD) is the stronger pick with 51. 6% revenue growth year-over-year, versus 35. 8% for Futu Holdings Limited (FUTU). Futu Holdings Limited (FUTU) offers the better valuation at 33. 9x trailing P/E (1. 8x forward), making it the more compelling value choice. Analysts rate Futu Holdings Limited (FUTU) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Futu Holdings Limited (FUTU) is the cheapest at 33.

9x versus Robinhood Markets, Inc. at 38. 6x. On forward P/E, Futu Holdings Limited is actually cheaper at 1. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Futu Holdings Limited wins at 0. 02x versus Robinhood Markets, Inc. 's 0. 16x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Robinhood Markets, Inc.

(HOOD) delivered a total return of +127. 0%, compared to +28. 5% for Futu Holdings Limited (FUTU). Over 10 years, the gap is even starker: FUTU returned +1026% versus HOOD's +127. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Futu Holdings Limited (FUTU) is the lower-risk stock at 2.

04β versus Robinhood Markets, Inc. 's 3. 05β — meaning HOOD is approximately 50% more volatile than FUTU relative to the S&P 500. On balance sheet safety, Futu Holdings Limited (FUTU) carries a lower debt/equity ratio of 31% versus 168% for Robinhood Markets, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Robinhood Markets, Inc.

(HOOD) is pulling ahead at 51. 6% versus 35. 8% for Futu Holdings Limited (FUTU). On earnings-per-share growth, the picture is similar: Robinhood Markets, Inc. grew EPS 31. 4% year-over-year, compared to 27. 2% for Futu Holdings Limited. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Robinhood Markets, Inc.

(HOOD) is the more profitable company, earning 42. 1% net margin versus 40. 1% for Futu Holdings Limited — meaning it keeps 42. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FUTU leads at 48. 7% versus 46. 8% for HOOD. At the gross margin level — before operating expenses — HOOD leads at 83. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Futu Holdings Limited (FUTU) is the more undervalued stock at a PEG of 0. 02x versus Robinhood Markets, Inc. 's 0. 16x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Futu Holdings Limited (FUTU) trades at 1. 8x forward P/E versus 41. 9x for Robinhood Markets, Inc. — 40. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HOOD: 48. 2% to $117. 14.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Futu Holdings Limited (FUTU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1026% 10Y return).

Robinhood Markets, Inc. (HOOD) carries a higher beta of 3. 05 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FUTU: +1026%, HOOD: +127. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.