Houlihan Lokey (NYSE:HLI – Get Free Report) and RiverNorth Opportunities Fund (NYSE:RIV – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Institutional & Insider Ownership
78.1% of Houlihan Lokey shares are owned by institutional investors. 22.5% of Houlihan Lokey shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Houlihan Lokey and RiverNorth Opportunities Fund, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Houlihan Lokey | 0 | 5 | 5 | 0 | 2.50 |
| RiverNorth Opportunities Fund | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Houlihan Lokey and RiverNorth Opportunities Fund’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Houlihan Lokey | 16.10% | 20.20% | 11.71% |
| RiverNorth Opportunities Fund | N/A | N/A | N/A |
Dividends
Houlihan Lokey pays an annual dividend of $2.80 per share and has a dividend yield of 2.2%. RiverNorth Opportunities Fund pays an annual dividend of $1.68 per share and has a dividend yield of 15.2%. Houlihan Lokey pays out 47.1% of its earnings in the form of a dividend. Houlihan Lokey has raised its dividend for 9 consecutive years.
Valuation and Earnings
This table compares Houlihan Lokey and RiverNorth Opportunities Fund”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Houlihan Lokey | $2.52 billion | 3.52 | $425.70 million | $5.95 | 21.61 |
| RiverNorth Opportunities Fund | $51.63 million | N/A | N/A | N/A | N/A |
Houlihan Lokey has higher revenue and earnings than RiverNorth Opportunities Fund.
Summary
Houlihan Lokey beats RiverNorth Opportunities Fund on 10 of the 12 factors compared between the two stocks.
About Houlihan Lokey
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as advise financial sponsors on various transactions. The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. It also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The Financial and Valuation Advisory segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property. It also provides fairness opinions in connection with M&A and other transactions, solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions. In addition, this segment offers dispute resolution services. It serves corporations, financial sponsors, and government agencies. The company was incorporated in 1972 and is headquartered in Los Angeles, California.
About RiverNorth Opportunities Fund
RiverNorth Opportunities Fund, Inc. is a close ended equity mutual fund co- launched and co- managed by ALPS Advisors, Inc. and RiverNorth Capital Management, LLC. It invests in the equity markets. The fund seeks to invest in stocks of companies operating across the diversified sectors. RiverNorth Opportunities Fund, Inc. was formed on December 24, 2015 and is domiciled in the United States.
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