Houlihan Lokey (NYSE:HLI – Get Free Report) is one of 1,746 publicly-traded companies in the “Capital Markets” industry, but how does it contrast to its rivals? We will compare Houlihan Lokey to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Houlihan Lokey and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Houlihan Lokey | 15.78% | 19.94% | 11.51% |
| Houlihan Lokey Competitors | 314.66% | 9.82% | 3.42% |
Earnings and Valuation
This table compares Houlihan Lokey and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Houlihan Lokey | $2.62 billion | $425.70 million | 24.02 |
| Houlihan Lokey Competitors | $2.38 billion | $398.05 million | 15.13 |
Houlihan Lokey has higher revenue and earnings than its rivals. Houlihan Lokey is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Houlihan Lokey and its rivals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Houlihan Lokey | 0 | 5 | 7 | 0 | 2.58 |
| Houlihan Lokey Competitors | 5605 | 20212 | 22567 | 650 | 2.37 |
Houlihan Lokey currently has a consensus target price of $160.44, suggesting a potential upside of 12.07%. As a group, “Capital Markets” companies have a potential upside of 23.73%. Given Houlihan Lokey’s rivals higher possible upside, analysts clearly believe Houlihan Lokey has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
78.1% of Houlihan Lokey shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 22.5% of Houlihan Lokey shares are held by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Dividends
Houlihan Lokey pays an annual dividend of $2.80 per share and has a dividend yield of 2.0%. Houlihan Lokey pays out 47.0% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Houlihan Lokey has increased its dividend for 9 consecutive years. Houlihan Lokey lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility and Risk
Houlihan Lokey has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Houlihan Lokey’s rivals have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.
Summary
Houlihan Lokey beats its rivals on 10 of the 15 factors compared.
Houlihan Lokey Company Profile
Houlihan Lokey, Inc. is a global investment bank headquartered in Los Angeles. Founded in 1972, the firm provides financial advice and related services to corporations, financial sponsors, governments and other organizations. The company’s main businesses include corporate finance, financial restructuring and financial and valuation advisory. Its services include advising on mergers and acquisitions, debt and equity financing, restructuring transactions, and business and asset valuations. Houlihan Lokey serves clients across the Americas, Europe, the Middle East and Asia-Pacific through an international office network.
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