Prediction: 2 Stocks That Will Be Worth More Than Robinhood Markets 10 Years From Now

Robinhood Markets (NASDAQ: HOOD) has gone on a wild run for shareholders since 2023. The stock is up more than 10-fold since the end of that year, going from less than $10 a share to pushing $150 in less than two years, providing life-changing wealth for long-term shareholders. A mobile stock trading platform that is expanding to new financial services, Robinhood is an investing favorite in this 2025 bull market.

However, if we look at Robinhood's valuation, it looks like investors are getting ahead of themselves when buying this stock. Here are two stocks that will be worth more than Robinhood Markets in 10 years, and why you should consider adding them to your portfolio instead.

1. SoFi Technologies' burgeoning banking business

The first stock with a better position than Robinhood is SoFi Technologies (NASDAQ: SOFI). It has a market cap of $34 billion compared with $135 billion for Robinhood (as of Oct. 9).

SoFi is a personal finance platform that is turning into a primary banking provider for individuals. It is the fastest growing online bank in the U.S. today, taking market share from legacy providers with a huge addressable market. As of last quarter, SoFi had 11.7 million customers, growing at a 51% annual rate since 2021. Robinhood, to compare, has barely increased its customer count since 2021, with 26.5 million funded accounts as of last quarter. If these trends continue, SoFi will have a larger customer base than Robinhood within a few years.

Robinhood and Sofi are similar stocks in the way that both are the leading disruptors of their respective sectors: stock brokers and consumer banking. Both will likely keep taking market share from the legacy players, given that SoFi and Robinhood have large user adoption from younger consumers. Where SoFi has an edge is the size of the banking sector versus stock brokerages. One of the largest stock brokers -- Charles Schwab -- has a market cap of $170 billion, which isn't that much more than Robinhood right now, while the likes of Bank of America has a market cap of $369 billion.

Add it all up, and I think it is likely that SoFi will have a larger market cap than Robinhood 10 years from now.

2. A competing brokerage provider

Stock number two has a market cap just below Robinhood and is actually a direct competitor: Interactive Brokers (NASDAQ: IBKR). The brokerage is also taking market share like Robinhood, but has a greater presence with professional investors such as hedge funds and more advanced traders. It has a market cap of $123 billion as of this writing, and trades at a more reasonable valuation than Robinhood.

Interactive Brokers hit 4.1 million active accounts in September, up from just over 1 million in 2021. Again, this is much faster customer growth than Robinhood. The company has much larger customer equity of $665 billion compared with $304 billion in platform assets at Robinhood, even though Interactive Brokers has a fraction of the level of funded customers. This shows that Interactive Brokers has the bigger players in the industry, which are generally more profitable and committed customers.

Plus, Interactive Brokers trades at a much more reasonable valuation than Robinhood. It has a price-to-earnings ratio (P/E) of 38 versus 77 at Robinhood, even though it is growing its customer count faster.

Robinhood has been a great stock to own during the past two years, making investors rich in the process. However, when looking at its slow customer growth and inflated valuation, I think better bets for investors are SoFi Technologies and Interactive Brokers for the next 10 years.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.