Houlihan Lokey Inc (HLI)vsRobinhood Markets Inc (HOOD)
HLI
Houlihan Lokey Inc
$141.88
+2.06%
FINANCIAL SERVICES · Cap: $9.70B
HOOD
Robinhood Markets Inc
$72.54
+5.01%
FINANCIAL SERVICES · Cap: $62.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Robinhood Markets Inc generates 69% more annual revenue ($4.47B vs $2.65B). HOOD leads profitability with a 42.1% profit margin vs 16.9%. HLI trades at a lower P/E of 21.4x. HLI earns a higher WallStSmart Score of 66/100 (B-).
HLI
Strong Buy66
out of 100
Grade: B-
HOOD
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.5%
Fair Value
$276.54
Current Price
$141.88
$134.66 discount
Margin of Safety
-439.5%
Fair Value
$13.94
Current Price
$72.54
$58.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 21 in profit
Strong operational efficiency at 24.9%
Earnings expanding 22.3% YoY
Keeps 42 of every $100 in revenue as profit
Strong operational efficiency at 46.5%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Revenue surging 26.5% year-over-year
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Elevated debt levels
Weak financial health signals
Earnings declined 34.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : HLI
The strongest argument for HLI centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 16.9% and operating margin at 24.9%. Revenue growth of 13.0% demonstrates continued momentum.
Bull Case : HOOD
The strongest argument for HOOD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 42.1% and operating margin at 46.5%. Revenue growth of 26.5% demonstrates continued momentum.
Bear Case : HLI
The primary concerns for HLI are PEG Ratio.
Bear Case : HOOD
The primary concerns for HOOD are P/E Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Key Dynamics to Monitor
HLI profiles as a mature stock while HOOD is a growth play — different risk/reward profiles.
HOOD carries more volatility with a beta of 2.48 — expect wider price swings.
HOOD is growing revenue faster at 26.5% — sustainability is the question.
HLI generates stronger free cash flow (217M), providing more financial flexibility.
Bottom Line
HLI scores higher overall (66/100 vs 56/100), backed by strong 16.9% margins and 13.0% revenue growth. Both earn "Strong 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 leading fintech innovator that has revolutionized retail investing by offering a commission-free trading platform since 2013. With its intuitive mobile application, the company enables a diverse range of market participants to access stocks, ETFs, options, and cryptocurrencies, fostering financial literacy and inclusivity. Robinhood's commitment to transparency and product innovation, including features like fractional shares and cash management services, solidifies its role as a significant player in the digital brokerage industry, appealing to a new generation of investors looking for accessible and efficient ways to navigate financial markets.
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