WallStSmart

Houlihan Lokey Inc (HLI)vsTradeweb Markets Inc (TW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Houlihan Lokey Inc generates 29% more annual revenue ($2.65B vs $2.05B). TW leads profitability with a 39.6% profit margin vs 16.9%. TW appears more attractively valued with a PEG of 2.97. TW earns a higher WallStSmart Score of 67/100 (B-).

HLI

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.55

TW

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 8.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 5.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HLIUndervalued (+38.5%)

Margin of Safety

+38.5%

Fair Value

$276.54

Current Price

$141.88

$134.66 discount

UndervaluedFair: $276.54Overvalued
TWUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$176.44

Current Price

$119.95

$56.49 discount

UndervaluedFair: $176.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HLI3 strengths · Avg: 8.3/10
Return on EquityProfitability
20.5%9/10

Every $100 of equity generates 21 in profit

Operating MarginProfitability
24.9%8/10

Strong operational efficiency at 24.9%

EPS GrowthGrowth
22.3%8/10

Earnings expanding 22.3% YoY

TW4 strengths · Avg: 10.0/10
Profit MarginProfitability
39.6%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
42.4%10/10

Strong operational efficiency at 42.4%

EPS GrowthGrowth
128.8%10/10

Earnings expanding 128.8% YoY

Altman Z-ScoreHealth
5.6410/10

Safe zone — low bankruptcy risk

Areas to Watch

HLI1 concerns · Avg: 2.0/10
PEG RatioValuation
6.542/10

Expensive relative to growth rate

TW2 concerns · Avg: 3.0/10
P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.972/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : TW

The strongest argument for TW centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.6% and operating margin at 42.4%. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : HLI

The primary concerns for HLI are PEG Ratio.

Bear Case : TW

The primary concerns for TW are P/E Ratio, PEG Ratio.

Key Dynamics to Monitor

HLI carries more volatility with a beta of 0.96 — expect wider price swings.

HLI is growing revenue faster at 13.0% — sustainability is the question.

TW generates stronger free cash flow (337M), providing more financial flexibility.

Monitor CAPITAL MARKETS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TW scores higher overall (67/100 vs 66/100), backed by strong 39.6% margins and 12.5% 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.

Tradeweb Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Tradeweb Markets Inc. creates and operates electronic marketplaces in the Americas, Europe, the Middle East, Africa, Asia Pacific and internationally.

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