HOOD vs. HLI

Last updated Jun 9, 2026

HOOD (Robinhood Markets, Inc.) and HLI (Houlihan Lokey, Inc.) are both stocks. Both operate in the Capital Markets industry within the Financial Services sector. Over the past 3 years, HOOD returned 108.29%/yr vs 16.12%/yr for HLI. At a 0.38 correlation, their price movements are largely independent.

Performance

HOOD vs. HLI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Robinhood Markets, Inc. (HOOD) and Houlihan Lokey, Inc. (HLI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HOOD achieves a -24.81% return, which is significantly lower than HLI's -20.61% return.

HOOD

• 1D: 3.12%
• 1M: 10.40%
• YTD: -24.81%
• 6M: -37.67%
• 1Y: 13.57%
• 3Y*: 108.29%
• 5Y*: —
• 10Y*: —

HLI

• 1D: -1.54%
• 1M: -9.87%
• YTD: -20.61%
• 6M: -21.92%
• 1Y: -21.42%
• 3Y*: 16.12%
• 5Y*: 14.31%
• 10Y*: 21.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HOOD vs. HLI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HOOD Robinhood Markets, Inc.	-24.81%	203.54%	192.46%	56.51%	-54.17%	-48.99%
HLI Houlihan Lokey, Inc.	-20.61%	1.64%	47.04%	40.67%	-13.88%	17.73%

Correlation

The correlation between HOOD and HLI is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (All Time) Calculated using the full available price history since Jul 30, 2021	0.38

The correlation between HOOD and HLI shifts across timeframes, from 0.27 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap HOOD : $77.81B HLI : $9.33B
EPS HOOD : $2.07 HLI : $6.22
PE Ratio HOOD : 41.10 HLI : 22.06
PEG Ratio HOOD : 0.00 HLI : 6.82
PS Ratio HOOD : 19.93 HLI : 3.59
PB Ratio HOOD : 8.03 HLI : 3.98
Total Revenue (TTM) HOOD : $3.91B HLI : $2.62B
Gross Profit (TTM) HOOD : $2.86B HLI : $1.37B
EBITDA (TTM) HOOD : $1.80B HLI : $636.63M

Return for Risk

HOOD vs. HLI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HOOD

HOOD Risk / Return Rank: 49
HOOD Sharpe Ratio Rank: 49
HOOD Sortino Ratio Rank: 51
HOOD Omega Ratio Rank: 48
HOOD Calmar Ratio Rank: 48
HOOD Martin Ratio Rank: 47

HLI

HLI Risk / Return Rank: 13
HLI Sharpe Ratio Rank: 8
HLI Sortino Ratio Rank: 11
HLI Omega Ratio Rank: 11
HLI Calmar Ratio Rank: 19
HLI Martin Ratio Rank: 15

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HOOD vs. HLI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Robinhood Markets, Inc. (HOOD) and Houlihan Lokey, Inc. (HLI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HOOD	HLI	Difference
Sharpe ratio: Return per unit of total volatility	0.20	-0.84	+1.03
Sortino ratio: Return per unit of downside risk	0.80	-1.03	+1.83
Omega ratio: Gain probability vs. loss probability	1.09	0.87	+0.23
Calmar ratio: Return relative to maximum drawdown	0.24	-0.64	+0.88
Martin ratio: Return relative to average drawdown	0.44	-1.22	+1.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HOOD vs. HLI - Sharpe Ratio Comparison

The current HOOD Sharpe Ratio is 0.20, which is higher than the HLI Sharpe Ratio of -0.84. The chart below compares the historical Sharpe Ratios of HOOD and HLI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HOOD	HLI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.20	-0.84	+1.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.52	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.81	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.77	-0.49

Drawdowns

HOOD vs. HLI - Drawdown Comparison

The maximum HOOD drawdown since its inception was -90.21%, which is greater than HLI's maximum drawdown of -36.57%. Use the drawdown chart below to compare losses from any high point for HOOD and HLI.

Drawdown Indicators

	HOOD	HLI	Difference
Max Drawdown Largest peak-to-trough decline	-90.21%	-36.57%	-53.64%
Max Drawdown (1Y) Largest decline over 1 year	-57.26%	-33.67%	-23.59%
Max Drawdown (3Y) Largest decline over 3 years	-57.26%	-33.67%	-23.59%
Max Drawdown (5Y) Largest decline over 5 years	—	-36.57%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.57%	—
Current Drawdown Current decline from peak	-44.22%	-33.67%	-10.55%
Average Drawdown Average peak-to-trough decline	-60.95%	-9.56%	-51.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	31.25%	17.58%	+13.67%

Volatility

HOOD vs. HLI - Volatility Comparison

Robinhood Markets, Inc. (HOOD) has a higher volatility of 22.93% compared to Houlihan Lokey, Inc. (HLI) at 6.97%. This indicates that HOOD's price experiences larger fluctuations and is considered to be riskier than HLI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HOOD	HLI	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.93%	6.97%	+15.96%
Volatility (6M) Calculated over the trailing 6-month period	50.49%	18.86%	+31.63%
Volatility (1Y) Calculated over the trailing 1-year period	69.17%	25.72%	+43.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	74.04%	27.93%	+46.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	74.04%	26.86%	+47.18%

Dividends

HOOD vs. HLI - Dividend Comparison

HOOD has not paid dividends to shareholders, while HLI's dividend yield for the trailing twelve months is around 1.82%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HLI Houlihan Lokey, Inc.	1.82%	1.36%	1.30%	1.82%	2.32%	1.56%	1.90%	2.46%	2.74%	1.76%	2.12%	0.57%
HOOD Robinhood Markets, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

HOOD vs. HLI - Profitability Comparison

The chart below illustrates the profitability comparison between Robinhood Markets, Inc. and Houlihan Lokey, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

HOOD - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Robinhood Markets, Inc. reported a gross profit of 0.00 and revenue of 359.00M. Therefore, the gross margin over that period was 0.0%.

HLI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Houlihan Lokey, Inc. reported a gross profit of 201.88M and revenue of 635.64M. Therefore, the gross margin over that period was 31.8%.

HOOD - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Robinhood Markets, Inc. reported an operating income of 0.00 and revenue of 359.00M, resulting in an operating margin of 0.0%.

HLI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Houlihan Lokey, Inc. reported an operating income of 125.15M and revenue of 635.64M, resulting in an operating margin of 19.7%.

HOOD - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Robinhood Markets, Inc. reported a net income of 346.00M and revenue of 359.00M, resulting in a net margin of 96.4%.

HLI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Houlihan Lokey, Inc. reported a net income of 99.84M and revenue of 635.64M, resulting in a net margin of 15.7%.

Frequently Asked Questions

Can I hold both HOOD and HLI in my portfolio?

HOOD and HLI have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HOOD or HLI?

HOOD has higher volatility (22.93%) compared to HLI (6.97%). In terms of maximum drawdown, HOOD dropped -90.21% vs HLI's -36.57%.

Which has better risk-adjusted returns?

HOOD currently has the higher Sharpe Ratio (0.20 vs -0.84), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.