Financial Metrics Comparison: FUTU vs IBKR vs HOOD
• Return on Equity (ROE):
• IBKR.US: 9.43%
• FUTU.US: 8.74%
• HOOD.US: 4.99%
Analysis: Interactive Brokers (IBKR) has the highest ROE, indicating more efficient use of shareholders’ equity to generate profit. • Return on Assets (ROA):
• IBKR.US: 0.27%
• FUTU.US: 2.06%
• HOOD.US: 0.94%
Analysis: Futu Holdings (FUTU) shows a higher ROA, reflecting more efficient use of its assets to generate earnings compared to IBKR and HOOD.
• Gross Profit Margin:
• IBKR.US: 88.73%
• FUTU.US: 81.74%
• HOOD.US: 81.62%
Analysis: Interactive Brokers has the highest gross profit margin, indicating it retains more revenue after incurring direct costs associated with production.
• Net Profit Margin:
• IBKR.US: 35.64%
• FUTU.US: 39.23%
• HOOD.US: 26.54%
Analysis: Futu Holdings has the highest net profit margin, meaning it retains a larger percentage of revenue as profit compared to the others, especially compared to Robinhood.
• Debt-to-Asset Ratio:
• IBKR.US: 88.89%
• FUTU.US: 77.75%
• HOOD.US: 82.77%
Analysis: Futu Holdings has the lowest debt-to-asset ratio, suggesting it is less leveraged and has less debt relative to its assets compared to the other two companies.
• Current Ratio:
• IBKR.US: 1.00
• FUTU.US: 1.26
• HOOD.US: 1.19
Analysis: Futu Holdings has the highest current ratio, indicating better short-term liquidity and its ability to cover short-term liabilities with short-term assets.
• Quick Ratio:
• IBKR.US: 0.51
• FUTU.US: 0.71
• HOOD.US: 0.42
Analysis: Futu Holdings also has the highest quick ratio, suggesting a better position to cover immediate liabilities without relying on inventory sales.
• Accounts Receivable Turnover:
• IBKR.US: 0.09
• FUTU.US: 0.53
• HOOD.US: 0.30
Analysis: Futu Holdings shows a higher turnover ratio, indicating it collects receivables more frequently than IBKR and HOOD, which could suggest better cash flow management.
• Fixed Asset Turnover:
• IBKR.US: N/A
• FUTU.US: 18.76
• HOOD.US: 10.70
Analysis: Futu Holdings has a higher fixed asset turnover, suggesting more efficient use of fixed assets to generate revenue compared to Robinhood.
• Sales and Marketing Expense Ratio:
• IBKR.US: N/A
• FUTU.US: 11.03%
• HOOD.US: 8.69%
Analysis: Futu Holdings spends a higher percentage of revenue on sales and marketing compared to Robinhood, possibly reflecting a focus on growth or market expansion.
Summary:
• Futu Holdings (FUTU.US) appears to be more efficient in using its assets (higher ROA) and managing its debt (lower debt-to-asset ratio). It also has strong liquidity ratios and a higher net profit margin, suggesting better financial health and profitability.
• Interactive Brokers (IBKR.US) shows strength in profitability (higher gross profit margin and ROE) but is less efficient in asset utilization (lower ROA).
• Robinhood (HOOD.US) has weaker performance across most metrics, especially in profitability and efficiency, but might appeal to growth-focused investors due to its higher valuation metrics.
Based on these metrics, Futu Holdings (FUTU.US) seems to offer a good balance of profitability and efficiency, while Interactive Brokers (IBKR.US) demonstrates strong profitability but lower efficiency. Robinhood (HOOD.US) appears riskier with lower profitability and efficiency indicators.
• IBKR.US: 9.43%
• FUTU.US: 8.74%
• HOOD.US: 4.99%
Analysis: Interactive Brokers (IBKR) has the highest ROE, indicating more efficient use of shareholders’ equity to generate profit. • Return on Assets (ROA):
• IBKR.US: 0.27%
• FUTU.US: 2.06%
• HOOD.US: 0.94%
Analysis: Futu Holdings (FUTU) shows a higher ROA, reflecting more efficient use of its assets to generate earnings compared to IBKR and HOOD.
• Gross Profit Margin:
• IBKR.US: 88.73%
• FUTU.US: 81.74%
• HOOD.US: 81.62%
Analysis: Interactive Brokers has the highest gross profit margin, indicating it retains more revenue after incurring direct costs associated with production.
• Net Profit Margin:
• IBKR.US: 35.64%
• FUTU.US: 39.23%
• HOOD.US: 26.54%
Analysis: Futu Holdings has the highest net profit margin, meaning it retains a larger percentage of revenue as profit compared to the others, especially compared to Robinhood.
• Debt-to-Asset Ratio:
• IBKR.US: 88.89%
• FUTU.US: 77.75%
• HOOD.US: 82.77%
Analysis: Futu Holdings has the lowest debt-to-asset ratio, suggesting it is less leveraged and has less debt relative to its assets compared to the other two companies.
• Current Ratio:
• IBKR.US: 1.00
• FUTU.US: 1.26
• HOOD.US: 1.19
Analysis: Futu Holdings has the highest current ratio, indicating better short-term liquidity and its ability to cover short-term liabilities with short-term assets.
• Quick Ratio:
• IBKR.US: 0.51
• FUTU.US: 0.71
• HOOD.US: 0.42
Analysis: Futu Holdings also has the highest quick ratio, suggesting a better position to cover immediate liabilities without relying on inventory sales.
• Accounts Receivable Turnover:
• IBKR.US: 0.09
• FUTU.US: 0.53
• HOOD.US: 0.30
Analysis: Futu Holdings shows a higher turnover ratio, indicating it collects receivables more frequently than IBKR and HOOD, which could suggest better cash flow management.
• Fixed Asset Turnover:
• IBKR.US: N/A
• FUTU.US: 18.76
• HOOD.US: 10.70
Analysis: Futu Holdings has a higher fixed asset turnover, suggesting more efficient use of fixed assets to generate revenue compared to Robinhood.
• Sales and Marketing Expense Ratio:
• IBKR.US: N/A
• FUTU.US: 11.03%
• HOOD.US: 8.69%
Analysis: Futu Holdings spends a higher percentage of revenue on sales and marketing compared to Robinhood, possibly reflecting a focus on growth or market expansion.
Summary:
• Futu Holdings (FUTU.US) appears to be more efficient in using its assets (higher ROA) and managing its debt (lower debt-to-asset ratio). It also has strong liquidity ratios and a higher net profit margin, suggesting better financial health and profitability.
• Interactive Brokers (IBKR.US) shows strength in profitability (higher gross profit margin and ROE) but is less efficient in asset utilization (lower ROA).
• Robinhood (HOOD.US) has weaker performance across most metrics, especially in profitability and efficiency, but might appeal to growth-focused investors due to its higher valuation metrics.
Based on these metrics, Futu Holdings (FUTU.US) seems to offer a good balance of profitability and efficiency, while Interactive Brokers (IBKR.US) demonstrates strong profitability but lower efficiency. Robinhood (HOOD.US) appears riskier with lower profitability and efficiency indicators.
(AI generated)
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