WallStSmart

Houlihan Lokey Inc (HLI)vsRobinhood Markets Inc (HOOD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Robinhood Markets Inc generates 76% more annual revenue ($4.61B vs $2.62B). HOOD leads profitability with a 41.1% profit margin vs 16.3%. HOOD appears more attractively valued with a PEG of 2.75. HOOD earns a higher WallStSmart Score of 60/100 (C+).

HLI

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 4.3Quality: 7.5
Piotroski: 4/9Altman Z: 2.55

HOOD

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 3.7Quality: 3.5
Piotroski: 3/9Altman Z: 0.65

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HLI2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

HOOD6 strengths · Avg: 9.0/10
Profit MarginProfitability
41.1%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Market CapQuality
$88.36B9/10

Large-cap with strong market position

Return on EquityProfitability
20.4%9/10

Every $100 of equity generates 20 in profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

Areas to Watch

HLI3 concerns · Avg: 2.0/10
PEG RatioValuation
6.542/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-16.6%2/10

Earnings declined 16.6%

HOOD4 concerns · Avg: 3.5/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

EPS GrowthGrowth
2.7%4/10

2.7% earnings growth

Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : HLI

The strongest argument for HLI centers on Debt/Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 22.5%.

Bull Case : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 41.1% and operating margin at 38.5%. Revenue growth of 15.1% demonstrates continued momentum.

Bear Case : HLI

The primary concerns for HLI are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : HOOD

The primary concerns for HOOD are Price/Book, EPS Growth, Debt/Equity. A P/E of 47.6x leaves little room for execution misses.

Key Dynamics to Monitor

HLI profiles as a declining stock while HOOD is a growth play — different risk/reward profiles.

HOOD carries more volatility with a beta of 2.35 — expect wider price swings.

HOOD is growing revenue faster at 15.1% — sustainability is the question.

HOOD generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

HOOD scores higher overall (60/100 vs 50/100), backed by strong 41.1% margins and 15.1% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Houlihan Lokey Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Houlihan Lokey, Inc., an investment banking firm, provides valuation and financial advisory services, capital markets, mergers and acquisitions (M&A) globally. The company is headquartered in Los Angeles, California.

Robinhood Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Robinhood Markets Inc (HOOD) is a pioneering fintech company that has transformed retail investing since its inception in 2013, providing a commission-free trading platform through an intuitive mobile app. Catering to a diverse demographic, Robinhood offers a wide array of investment products—including stocks, ETFs, options, and cryptocurrencies—while fostering financial education and inclusivity. Its innovative features such as fractional shares and robust cash management solutions reinforce its competitive position in the digital brokerage sector, appealing to a new generation of investors seeking transparent and efficient access to the financial markets.

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