WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Robinhood Markets Inc generates 95% more annual revenue ($4.93B vs $2.52B). HOOD leads profitability with a 42.0% profit margin vs 16.1%. HOOD appears more attractively valued with a PEG of 2.34. HOOD earns a higher WallStSmart Score of 72/100 (B).

HLI

Hold

48

out of 100

Grade: D+

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

HOOD

Strong Buy

72

out of 100

Grade: B

Growth: 10.0Profit: 8.5Value: 4.3Quality: 3.5
Piotroski: 3/9Altman Z: 0.65

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HLI1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

HOOD6 strengths · Avg: 9.3/10
Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
43.9%10/10

Strong operational efficiency at 43.9%

Revenue GrowthGrowth
32.3%10/10

Revenue surging 32.3% year-over-year

Market CapQuality
$84.07B9/10

Large-cap with strong market position

Return on EquityProfitability
20.4%9/10

Every $100 of equity generates 20 in profit

EPS GrowthGrowth
47.6%8/10

Earnings expanding 47.6% YoY

Areas to Watch

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

Expensive relative to growth rate

Revenue GrowthGrowth
-15.6%2/10

Revenue declined 15.6%

EPS GrowthGrowth
-19.0%2/10

Earnings declined 19.0%

HOOD4 concerns · Avg: 3.8/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

P/E RatioValuation
39.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Debt/EquityHealth
1.443/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : HOOD

The strongest argument for HOOD centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 42.0% and operating margin at 43.9%. Revenue growth of 32.3% 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 PEG Ratio, P/E Ratio, Price/Book.

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 2.32 — expect wider price swings.

HOOD is growing revenue faster at 32.3% — sustainability is the question.

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

Bottom Line

HOOD scores higher overall (72/100 vs 48/100), backed by strong 42.0% margins and 32.3% 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.

Robinhood Markets Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Robinhood Markets Inc (HOOD) is a leading fintech company revolutionizing retail investing since 2013 with its innovative, commission-free trading platform. By offering a diverse range of investment products—including stocks, ETFs, options, and cryptocurrencies—Robinhood caters to a broad demographic, particularly engaging younger investors. The company is committed to financial education and inclusivity, further solidified by its unique features like fractional shares and advanced cash management solutions. With a focus on transparency and efficiency, Robinhood is well-positioned as a key player in the evolving digital brokerage landscape.

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