Capital One vs Interactive Brokers

Capital One and Interactive Brokers are compared on this page to provide a neutral overview of their business models, financial performance, and market context. The page explains how each firm generates revenue, how their operations are organised, and the environments in which they operate. Educational content, not financial advice.

Capital One and Interactive Brokers are compared on this page to provide a neutral overview of their business models, financial performance, and market context. The page explains how each firm generat...

Comparison Snapshot

Key Financial Metrics

COF

Metric

IBKR

$137.63B

Market Cap

$127.80B

25.90%

Potential Profit

2.01%

Buy

Analyst Rating

Buy

Why It's Moving

Capital One Stock Dips After $5.1B Brex Acquisition and Q4 Earnings Miss

Q4 revenue surged 58% year-over-year to drive $2.1 billion in earnings, validating the Discover merger's synergy potential.
$5.15 billion Brex buyout positions Capital One to capture growth in corporate payments, building on its payments platform transformation.
Company returned $2.5 billion to shareholders via buybacks in Q4, signaling confidence despite margin pressures from heavy investments.

Sentiment:

🌋Volatile

Interactive Brokers Surges to Record Highs on Q4 Earnings Beat and Trading Boom.

Commissions revenue leaped 37% to $477 million, driven by 65% surge in stock trading and 32% in high-margin options, signaling robust market participation.
Client equity hit $779.9 billion (up 37% YoY) and margin loans reached $90.2 billion, boosting interest income and underscoring deeper capital commitment from traders.
Analysts at BMO and Barclays hiked price targets post-earnings, citing solid pretax beats, confident management tone, and constructive 2026 market outlook for brokers.

Sentiment:

🐃Bullish

Capital One Stock Dips After $5.1B Brex Acquisition and Q4 Earnings Miss

Q4 revenue surged 58% year-over-year to drive $2.1 billion in earnings, validating the Discover merger's synergy potential.
$5.15 billion Brex buyout positions Capital One to capture growth in corporate payments, building on its payments platform transformation.
Company returned $2.5 billion to shareholders via buybacks in Q4, signaling confidence despite margin pressures from heavy investments.

Sentiment:

🌋Volatile

Interactive Brokers Surges to Record Highs on Q4 Earnings Beat and Trading Boom.

Commissions revenue leaped 37% to $477 million, driven by 65% surge in stock trading and 32% in high-margin options, signaling robust market participation.
Client equity hit $779.9 billion (up 37% YoY) and margin loans reached $90.2 billion, boosting interest income and underscoring deeper capital commitment from traders.
Analysts at BMO and Barclays hiked price targets post-earnings, citing solid pretax beats, confident management tone, and constructive 2026 market outlook for brokers.

Sentiment:

🐃Bullish

Investment Analysis

Capital One

COF

Pros

Capital One's credit card portfolio shows solid growth, boosting net interest margins and revenue despite high interest rates.
The company operates diverse segments including credit card, consumer banking, and commercial banking, which provides a broad revenue base.
Capital One has a market capitalization of approximately $140 billion with analyst consensus rating it as a strong buy.

Considerations

Capital One's price-to-earnings ratio is relatively high at 93.00, which might indicate overvaluation compared to peers.
Return on equity is moderate at around 9.37%, lower than some competitors in the financial services sector.
The company faces high uncertainty linked to economic conditions and credit risk, given its significant credit exposure.

Interactive Brokers

IBKR

Pros

Interactive Brokers benefits from a diversified revenue stream including trading commissions, net interest income, and ancillary service fees.
The firm's short duration investment portfolio is advantageous in the current high interest rate environment.
Interactive Brokers serves over 4 million client accounts and offers broad global access to various asset classes, supporting market position.

Considerations

A potential decline in interest rates could negatively impact Interactive Brokers' significant net interest income.
The company's dividend yield is modest at around 0.58%, which may be less attractive for income-focused investors.
Interactive Brokers operates in a highly competitive brokerage industry with execution risks and pressure on commission rates.

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