COIN vs. IBKR: Which Trading Platform Stock Has More Upside?

Retail access to cryptocurrencies is increasing steadily as platforms improve onboarding, enhance user experiences and align more closely with regulatory expectations. The Federal Reserve’s recent stance is likely to support client activity and deal flow. Additionally, investments in artificial intelligence (AI) and technology are expected to boost long-term efficiency despite short-term cost pressure. In this evolving landscape, let’s find out which company is better positioned for long-term growth — Coinbase Global Inc. COIN or Interactive Brokers Group, Inc. IBKR?

Stablecoins are emerging as a crucial link between traditional finance and the crypto world, playing a key role in the development of next-generation digital financial infrastructure. Major banks are even beginning to explore their own stablecoin initiatives. As tokenization, stablecoins and decentralized finance (DeFi) continue to evolve, retail users will gain access to a growing suite of user-friendly and functional crypto services that extend far beyond basic asset trading.

Yet, cyber threats remain a challenge.

Factors to Consider for COIN

Coinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. The platform is likely to benefit from President Trump’s supportive stance on crypto and his push for regulatory clarity. With 83% of its revenues generated domestically, Coinbase is tightly aligned with a U.S. market that is increasingly viewed as a global leader in crypto innovation.

It is aligned with CEO Brian Armstrong’s broader vision of becoming the industry’s premier “everything exchange.” Its recent initiatives in this direction include launching a unique equity index future that provides exposure to Mag 7 stocks, as well as crypto futures, providing $100 million bitcoin-backed financing to CleanSpark, partnering with Morpho and launching a USDC lending product.

COIN has been continually pursuing strategic moves, both organic and inorganic, that help it accelerate its trading activities as well as amplify revenues. While its partnership with Morpho and the launch of the USDC lending product deepen its integration with DeFi, providing the bitcoin-backed financing to CleanSpark helps COIN expand into crypto lending. 

The company is actively advancing real-world crypto adoption through infrastructure initiatives like Base — its cost-effective Layer 2 scaling solution — and a heightened focus on stablecoins. These efforts support Coinbase’s broader strategy to become the go-to platform for businesses adopting digital assets. 

Coinbase is also pushing stablecoins into the mainstream with Coinbase Payments, an alternative to traditional card processing fees that enables stablecoin-based online transactions.

Nonetheless, elevated transaction and operating expenses continue to weigh on margins. Coinbase remains heavily exposed to volatility in major cryptocurrencies such as Bitcoin and Ethereum. A sharp decline in asset prices could hurt earnings, reduce crypto holdings’ value, and strain liquidity and future cash flows.

Factors to Consider for IBKR

IBKR is one of the world’s leading electronic trading platforms, offering low-cost, seamless global access to an extensive range of financial products for both institutional and individual investors. Its service spans 160 market centers in 36 countries and 28 currencies around the world.
Since its inception, Interactive Brokers has concentrated on building proprietary software to automate broker-dealer functions, enabling efficiency and scale. Its relatively low compensation expenses as a percentage of net revenues, coupled with global expansion and favorable interest rate dynamics, continue to support revenue growth.

The company is actively pursuing growth opportunities in emerging markets such as Taiwan, Mexico, and India, while also expanding in Europe, where its business has been growing rapidly. To further enhance its global product offering, IBKR has added access to Bursa Malaysia, one of Southeast Asia’s largest stock exchanges, allowing clients broader exposure to international equities. This geographic and product diversification helps stabilize revenues by reducing dependence on any single market.

IBKR has also demonstrated a consistent commitment to shareholder returns. In April 2024, the company raised its quarterly dividend by 150% to $0.25 per share, followed by another 28% increase in April 2025. Alongside these hikes, IBKR announced a four-for-one forward stock split to make its shares more accessible. With minimal reliance on debt and a strong liquidity position, the company is well-positioned to sustain dividend growth, further enhancing shareholder value.

On the flip side, non-interest expenses have been steadily rising. Ongoing investments in expanding franchises, product launches and technology upgrades are expected to keep costs elevated. While these expenditures may put pressure on margins in the near term, they reflect a strategic focus on long-term growth and competitive differentiation.

Estimates for COIN and IBKR

The Zacks Consensus Estimate for COIN’s 2025 revenues implies a 7.2% year-over-year increase, while that for EPS implies a 7.8% year-over-year decrease.  EPS estimates have, however, moved north over the past 60 days.

The Zacks Consensus Estimate for IBKR’s 2025 revenues and EPS implies an 8.9% and 11.4% year-over-year increase, respectively. EPS estimates have moved north over the past 60 days.

Price Performance of COIN and IBKR

COIN shares have lost 13.2% in the past three months, while IBKR shares have rallied 20.4% in the same time. 

Are COIN and IBKR Shares Expensive?

Coinbase is trading at a forward 12-month price-to-earnings multiple of 50.51, below its median of 60.24 over the past year. IBKR’s forward 12-month price-to-earnings multiple sits at 31.75, above its median of 27.18 over the past year.

Conclusion

Coinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.

On the other hand, low levels of compensation expense, development of proprietary software, and steadily increasing emerging market customers are expected to aid Interactive Brokers.

COIN carries a Zacks Rank #3 (Hold).  Price appreciation as well as favorable valuation compared to COIN makes IBKR, carrying a Zacks Rank #2 (Buy), a safer investment option.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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