Coinbase Coin and Robinhood Hood are two names that are discussed simultaneously on topics related to cryptocurrency. Given President Donald Trump’s code favor, both of these stocks have been in the spotlight. The movement of Bitcoin, the biggest cryptocurrency, affects these stocks. The relaxation of regulatory controls to accelerate the adoption of cryptography, including institutions, sparks optimism. It is important to integrate artificial intelligence (AI) and blockchain technology to increase security and efficiency. However, cyber threats remain a challenge.
But which stocks are more attractive as investment options? Let’s take a closer look at the basics of these stocks.
America’s largest registered crypto exchanges are set to benefit from the volatility and prices of higher crypto assets. Focusing on Trump’s pro-crypto trends and clarity of regulations will benefit Coinbase even more. The company generated 83% of its total revenue in the US. This is assumed as a crypto hub. Total revenue more than doubled in 2024, marking a positive adjusted EBITDA for the second year in a row.
Transaction revenues driven primarily by transaction volume should continue to improve. In 2024, trading volumes more than doubled year-on-year, reflecting an increase in both the total US market and market share. Transaction revenues more than doubled from the previous year in 2024.
Coinbase invests in basic platforms such as infrastructure and bases to enhance cryptographic utilities. Layer 2 solution. Base is a low-cost tier 2 solution that supports blockchain scale. Initiatives to enhance the usefulness of crypto via base and stubcoin are encouraging.
Coinbase is a fundamentally powerful company. In 2024, it ended with $9.3 billion in resources. This was defined as cash and cash equivalents and USDC, an increase of $3.8 billion from the previous year.
Debt has declined over the past few quarters, but the total debt capital ratio has improved. Also, the higher interest earned means that the company can comfortably serve its debt.
Management expects Coinbase to become the platform for companies that are trying to consolidate cryptocurrency.
However, increasing costs due to increased transaction costs and other operating expenses tend to weigh margins.
Cryptocurrency price risk can have a negative impact on business outcomes. A decline in the market price of Bitcoin, Ethereum and other crypto assets could have a negative impact on revenue, the carrying value of crypto assets, and future cash flows. This can also affect liquidity and ability to meet ongoing obligations.
The story continues
Robinhood is looking to expand its market and reach as it evolves from a brokerage that primarily trades on digital assets into a more mature and diversified entity. Robinhood is diversifying its product base to attract new clients and market share.
Transaction-based revenue is expected to benefit from the company’s efforts to become a leader in the active trader market, but it should also encourage the top line in retail participation and secular tailwinds, such as a growing mobile banking population and an improved net interest revenue.
Rapid product innovation through vertical integration can expand your customer base, enable greater operational leverage, and pave the way for sustainable profitability.
By managing costs, the company is improving its margins.
Robinhood operates in a highly regulated industry and is subject to scrutiny by many authorities. Exposure to regulatory risks that result in heavy fines and restrictions can affect its profitability.
Robinhood incurs significant SBC costs compared to net revenue. The company aims to improve its compensation arrangements, but SBC’s significant costs will continue to dilute shareholder value in the short term.
Zacks Consensus estimates of Coin’s 2025 revenues mean a year-over-year increase, but the same thing about EPS means a 3.7% decrease. However, EPS estimates have moved north over the past seven days.
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On the contrary, Hood’s 2025 revenue and EPS Zacks consensus estimates mean an increase of 25.4% and 34.9% year-on-year, respectively. However, EPS estimates have moved south over the past seven days.
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Coinbase has traded at a multiple of 23.83 times, less than the median of 25.02 times over the past five years. Hood’s forward income has been sitting multiple times at 27.75 times, above the median negative 10.24 times over the last five years.
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The biggest crypto exchange, coin performance, depends solely on cryptographic movement. In contrast, Hood, along with cryptocurrencies, offers a diverse portfolio of stocks, options and exchange sales financing, among other things, and to navigate centralized challenges. The two companies are expanding internationally and are ventured across Europe and the Asia-Pacific region.
Food stocks have won 131.3% over the past year, while Coin lost 26.7%. Coin has Zacks Rank #1 (Strong Purchase), while Hood currently has Zacks Rank #2 (Purchase). Still, Hood seems to be a safe investment bet right now.
You can see the full list of Zacks #1 rank stocks today here.
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Coinbase Global, Inc. (Coin): Free Stock Analysis Report
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This article was originally published on Zacks Investment Research (zacks.com).
