HOOD vs. RDDT

Last updated Jun 9, 2026

HOOD (Robinhood Markets, Inc.) and RDDT (Reddit, Inc.) are both stocks. HOOD operates in Capital Markets (Financial Services), while RDDT operates in Internet Content & Information (Communication Services). Over the past year, HOOD returned 13.57% vs 41.09% for RDDT. At a 0.47 correlation, their price movements are largely independent.

Performance

HOOD vs. RDDT - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with HOOD having a -24.81% return and RDDT slightly lower at -25.55%.

HOOD

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

RDDT

• 1D: -1.34%
• 1M: 9.84%
• YTD: -25.55%
• 6M: -27.78%
• 1Y: 41.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HOOD vs. RDDT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
HOOD Robinhood Markets, Inc.	-24.81%	203.54%	100.75%
RDDT Reddit, Inc.	-25.55%	40.64%	247.74%

Correlation

The correlation between HOOD and RDDT is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (All Time) Calculated using the full available price history since Mar 21, 2024	0.47

Fundamentals

Market Cap HOOD : $77.81B RDDT : $34.66B
EPS HOOD : $2.07 RDDT : $3.56
PE Ratio HOOD : 41.10 RDDT : 48.09
PS Ratio HOOD : 19.93 RDDT : 13.75
PB Ratio HOOD : 8.03 RDDT : 10.90
Total Revenue (TTM) HOOD : $3.91B RDDT : $2.47B
Gross Profit (TTM) HOOD : $2.86B RDDT : $2.26B
EBITDA (TTM) HOOD : $1.80B RDDT : $655.01M

Return for Risk

HOOD vs. RDDT — 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

RDDT

RDDT Risk / Return Rank: 60
RDDT Sharpe Ratio Rank: 64
RDDT Sortino Ratio Rank: 62
RDDT Omega Ratio Rank: 60
RDDT Calmar Ratio Rank: 59
RDDT Martin Ratio Rank: 57

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. RDDT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Robinhood Markets, Inc. (HOOD) and Reddit, Inc. (RDDT). 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	RDDT	Difference
Sharpe ratio: Return per unit of total volatility	0.20	0.63	-0.44
Sortino ratio: Return per unit of downside risk	0.80	1.28	-0.49
Omega ratio: Gain probability vs. loss probability	1.09	1.15	-0.06
Calmar ratio: Return relative to maximum drawdown	0.24	0.75	-0.51
Martin ratio: Return relative to average drawdown	0.44	1.39	-0.96
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. RDDT - Sharpe Ratio Comparison

The current HOOD Sharpe Ratio is 0.20, which is lower than the RDDT Sharpe Ratio of 0.63. The chart below compares the historical Sharpe Ratios of HOOD and RDDT, 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	RDDT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.20	0.63	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.92	-0.64

Drawdowns

HOOD vs. RDDT - Drawdown Comparison

The maximum HOOD drawdown since its inception was -90.21%, which is greater than RDDT's maximum drawdown of -61.41%. Use the drawdown chart below to compare losses from any high point for HOOD and RDDT.

Drawdown Indicators

	HOOD	RDDT	Difference
Max Drawdown Largest peak-to-trough decline	-90.21%	-61.41%	-28.80%
Max Drawdown (1Y) Largest decline over 1 year	-57.26%	-54.99%	-2.27%
Max Drawdown (3Y) Largest decline over 3 years	-57.26%	—	—
Current Drawdown Current decline from peak	-44.22%	-36.78%	-7.44%
Average Drawdown Average peak-to-trough decline	-60.95%	-24.45%	-36.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	31.25%	29.63%	+1.62%

Volatility

HOOD vs. RDDT - Volatility Comparison

Robinhood Markets, Inc. (HOOD) has a higher volatility of 22.93% compared to Reddit, Inc. (RDDT) at 20.48%. This indicates that HOOD's price experiences larger fluctuations and is considered to be riskier than RDDT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HOOD	RDDT	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.93%	20.48%	+2.45%
Volatility (6M) Calculated over the trailing 6-month period	50.49%	45.66%	+4.83%
Volatility (1Y) Calculated over the trailing 1-year period	69.17%	65.39%	+3.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	74.04%	81.27%	-7.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	74.04%	81.27%	-7.23%

Dividends

HOOD vs. RDDT - Dividend Comparison

Neither HOOD nor RDDT has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

HOOD vs. RDDT - Profitability Comparison

The chart below illustrates the profitability comparison between Robinhood Markets, Inc. and Reddit, 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%.

RDDT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported a gross profit of 607.14M and revenue of 663.41M. Therefore, the gross margin over that period was 91.5%.

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%.

RDDT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported an operating income of 182.91M and revenue of 663.41M, resulting in an operating margin of 27.6%.

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%.

RDDT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Reddit, Inc. reported a net income of 203.98M and revenue of 663.41M, resulting in a net margin of 30.8%.

Frequently Asked Questions

Can I hold both HOOD and RDDT in my portfolio?

HOOD and RDDT have a correlation of 0.50, 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 RDDT?

HOOD has higher volatility (22.93%) compared to RDDT (20.48%). In terms of maximum drawdown, HOOD dropped -90.21% vs RDDT's -61.41%.

Which has better risk-adjusted returns?

RDDT currently has the higher Sharpe Ratio (0.63 vs 0.20), 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.