WallStSmart

Houlihan Lokey Inc (HLI)vsMorgan Stanley (MS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 3062% more annual revenue ($79.79B vs $2.52B). MS leads profitability with a 25.6% profit margin vs 16.1%. MS appears more attractively valued with a PEG of 1.61. MS 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

MS

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.7Quality: 4.5
Piotroski: 5/9Altman Z: 0.38

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

MS5 strengths · Avg: 9.0/10
Market CapQuality
$288.43B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
39.9%10/10

Strong operational efficiency at 39.9%

Profit MarginProfitability
25.6%9/10

Keeps 26 of every $100 in revenue as profit

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

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

Expensive relative to growth rate

Revenue GrowthGrowth
-15.5%2/10

Revenue declined 15.5%

EPS GrowthGrowth
-19.0%2/10

Earnings declined 19.0%

MS2 concerns · Avg: 3.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

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 18.4%.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 25.6% and operating margin at 39.9%. Revenue growth of 10.8% 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, Altman Z-Score.

Key Dynamics to Monitor

HLI profiles as a declining stock while MS is a mature 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 10.8% — sustainability is the question.

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

Bottom Line

MS scores higher overall (72/100 vs 48/100), backed by strong 25.6% margins and 10.8% 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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