WallStSmart

Houlihan Lokey Inc (HLI)vsCharles Schwab Corp (SCHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Charles Schwab Corp generates 931% more annual revenue ($26.03B vs $2.52B). SCHW leads profitability with a 38.8% profit margin vs 16.1%. SCHW appears more attractively valued with a PEG of 1.06. SCHW earns a higher WallStSmart Score of 79/100 (B+).

HLI

Hold

48

out of 100

Grade: D+

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

SCHW

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 5.7Quality: 6.5
Piotroski: 6/9Altman Z: -0.14

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

SCHW6 strengths · Avg: 9.0/10
Profit MarginProfitability
38.8%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
51.9%10/10

Strong operational efficiency at 51.9%

Market CapQuality
$184.96B9/10

Large-cap with strong market position

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

Revenue GrowthGrowth
20.9%8/10

Revenue surging 20.9% year-over-year

EPS GrowthGrowth
42.6%8/10

Earnings expanding 42.6% 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%

SCHW1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
-0.142/10

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 18.0%.

Bull Case : SCHW

The strongest argument for SCHW centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 38.8% and operating margin at 51.9%. Revenue growth of 20.9% demonstrates continued momentum.

Bear Case : HLI

The primary concerns for HLI are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : SCHW

The primary concerns for SCHW are Altman Z-Score.

Key Dynamics to Monitor

HLI profiles as a declining stock while SCHW is a growth play — different risk/reward profiles.

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

SCHW is growing revenue faster at 20.9% — sustainability is the question.

SCHW generates stronger free cash flow (7.2B), providing more financial flexibility.

Bottom Line

SCHW scores higher overall (79/100 vs 48/100), backed by strong 38.8% margins and 20.9% 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.

Charles Schwab Corp

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.

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