Houlihan Lokey Inc (HLI)vsMorgan Stanley (MS)
HLI
Houlihan Lokey Inc
$139.25
-1.38%
FINANCIAL SERVICES · Cap: $9.52B
MS
Morgan Stanley
$211.93
-2.73%
FINANCIAL SERVICES · Cap: $343.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Morgan Stanley generates 2696% more annual revenue ($73.17B vs $2.62B). MS leads profitability with a 24.7% profit margin vs 16.3%. MS appears more attractively valued with a PEG of 2.57. MS earns a higher WallStSmart Score of 71/100 (B).
HLI
Buy50
out of 100
Grade: C-
MS
Strong Buy71
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Mega-cap, among the largest globally
Strong operational efficiency at 40.6%
Keeps 25 of every $100 in revenue as profit
16.3% revenue growth
Earnings expanding 31.9% YoY
Areas to Watch
Expensive relative to growth rate
Revenue declined 4.6%
Earnings declined 16.6%
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : HLI
The strongest argument for HLI centers on Debt/Equity, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 22.5%.
Bull Case : MS
The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% 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. Debt-to-equity of 3.45 is elevated, increasing financial risk.
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 1.22 — expect wider price swings.
MS is growing revenue faster at 16.3% — sustainability is the question.
HLI generates stronger free cash flow (287M), providing more financial flexibility.
Bottom Line
MS scores higher overall (71/100 vs 50/100), backed by strong 24.7% margins and 16.3% revenue growth. Both earn "Strong Buy" and "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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