Houlihan Lokey Inc (HLI)vsMorgan Stanley (MS)
HLI
Houlihan Lokey Inc
$129.00
+1.11%
FINANCIAL SERVICES · Cap: $8.77B
MS
Morgan Stanley
$216.33
+1.21%
FINANCIAL SERVICES · Cap: $343.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 2984% more annual revenue ($77.83B vs $2.52B). MS leads profitability with a 25.9% profit margin vs 16.1%. MS appears more attractively valued with a PEG of 2.06. MS earns a higher WallStSmart Score of 73/100 (B).
HLI
Hold48
out of 100
Grade: D+
MS
Strong Buy73
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Strong operational efficiency at 41.6%
Earnings expanding 62.4% YoY
Keeps 26 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 28.0% year-over-year
Areas to Watch
Expensive relative to growth rate
Revenue declined 15.6%
Earnings declined 19.0%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : HLI
The strongest argument for HLI centers on Debt/Equity. Profitability is solid with margins at 16.1% and operating margin at 18.0%.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 25.9% and operating margin at 41.6%. Revenue growth of 28.0% demonstrates continued momentum.
Bear Case : HLI
The primary concerns for HLI are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : MS
The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
HLI profiles as a declining stock while MS is a growth play — different risk/reward profiles.
MS carries more volatility with a beta of 1.21 — expect wider price swings.
MS is growing revenue faster at 28.0% — sustainability is the question.
HLI generates stronger free cash flow (287M), providing more financial flexibility.
Bottom Line
MS scores higher overall (73/100 vs 48/100), backed by strong 25.9% margins and 28.0% revenue growth. Both earn "Strong Buy" and "Hold" 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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