Houlihan Lokey, Inc. (HLI) vs Hut 8 Corp. (HUT)

Houlihan Lokey, Inc. and Hut 8 Corp. are both Capital Markets companies. Houlihan Lokey, Inc. and Hut 8 Corp. are of similar size ($9.4B and $9.0B). Hut 8 Corp. has negative trailing earnings, so its P/E is not meaningful; Houlihan Lokey, Inc. trades at 21.3×. Hut 8 Corp. grew revenue faster over the last twelve months: 129.5% against 1.72%. Houlihan Lokey, Inc. has the higher net margin (16.1% vs −188.7%) and the higher return on invested capital (21.3% vs −27.5%). Across the 18 metrics below, Houlihan Lokey, Inc. leads on 14 and Hut 8 Corp. on 4.

Valuation

Metric HLI HUT Capital Markets median
P/E 21.27 n/m 14.20
P/S 3.41 25.27 2.00
P/B 3.82 4.58 1.51
Price to free cash flow 17.77 n/m 6.36
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.70% (8.01%) (3.94%)
Free cash flow yield 5.63% (9.90%) (1.62%)

Profitability

Metric HLI HUT Capital Markets median
Gross margin 35.68% 55.95% 62.80%
Operating margin 20.41% (295.30%) 0.00%
Net margin 16.08% (188.65%) (0.55%)
Free cash flow margin 19.21% (251.08%) 0.00%
Return on equity 18.30% (38.18%) 0.00%
Return on assets 11.22% (10.00%) 0.00%
Return on invested capital 21.32% (27.46%) 0.00%

Growth

Metric HLI HUT Capital Markets median
Revenue growth (TTM) 1.72% 129.50% 20.70%
EPS growth (last fiscal year) 6.87% (161.67%) 22.92%
Revenue growth, 5-year CAGR 11.40% 30.64% 18.16%
Net income growth, 5-year CAGR 6.36% 0.00% 0.00%

Health

Metric HLI HUT Capital Markets median
Debt to equity 0.00 4.22 0.08
Current ratio 1.36 19.35 1.50
Net debt to EBITDA (2.09) (0.74) (0.24)

Dividend

Metric HLI HUT Capital Markets median
Dividend yield 2.01% — 1.36%
Payout ratio 0.44 — 0.19

Size

Metric HLI HUT Capital Markets median
Market cap 8.98b 9.38b 565.91m

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