Houlihan Lokey Inc (HLI)vsMorgan Stanley (MS)
HLI
Houlihan Lokey Inc
$141.88
+2.06%
FINANCIAL SERVICES · Cap: $9.70B
MS
Morgan Stanley
$165.65
-0.13%
FINANCIAL SERVICES · Cap: $263.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 2555% more annual revenue ($70.30B vs $2.65B). MS leads profitability with a 24.0% profit margin vs 16.9%. MS appears more attractively valued with a PEG of 1.83. MS earns a higher WallStSmart Score of 76/100 (B+).
HLI
Strong Buy66
out of 100
Grade: B-
MS
Strong Buy76
out of 100
Grade: B+
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
+59.3%
Fair Value
$407.18
Current Price
$165.65
$241.53 discount
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
Mega-cap, among the largest globally
Strong operational efficiency at 38.6%
Keeps 24 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 20.7% YoY
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
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 : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : HLI
The primary concerns for HLI are PEG Ratio.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
MS carries more volatility with a beta of 1.21 — expect wider price swings.
HLI is growing revenue faster at 13.0% — sustainability is the question.
HLI generates stronger free cash flow (217M), providing more financial flexibility.
Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MS scores higher overall (76/100 vs 66/100), backed by strong 24.0% margins and 11.0% revenue growth. HLI offers better value entry with a 38.5% margin of safety. Both earn "Strong Buy" and "Strong 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.
Morgan Stanley
FINANCIAL SERVICES · CAPITAL MARKETS · USA
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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