Houlihan Lokey, Inc. (HLI) vs Virtu Financial, Inc. (VIRT)

Houlihan Lokey, Inc. and Virtu Financial, Inc. are both Capital Markets companies. Houlihan Lokey, Inc. and Virtu Financial, Inc. are of similar size ($8.9B and $8.2B). Virtu Financial, Inc. trades at the lower P/E: 8.9× against 21.2×. Virtu Financial, Inc. grew revenue faster over the last twelve months: 20.8% against 1.72%. Houlihan Lokey, Inc. has the higher net margin (16.1% vs 12.7%) and the higher return on invested capital (21.3% vs 0.00%). Both pay a dividend; Virtu Financial, Inc. yields more (5.78% vs 1.76%). Across the 22 metrics below, Virtu Financial, Inc. leads on 13 and Houlihan Lokey, Inc. on 9.

Valuation

Metric HLI VIRT Capital Markets median
P/E 21.19 8.87 15.78
P/S 3.40 1.15 2.32
P/B 3.81 2.01 1.89
Price to free cash flow 17.70 9.78 6.25
EV/EBITDA 15.00 n/m 8.87
EV/Sales 3.27 (0.01) 2.28
Earnings yield 4.72% 11.27% (3.77%)
Free cash flow yield 5.65% 10.23% (1.49%)

Profitability

Metric HLI VIRT Capital Markets median
Gross margin 35.68% 81.77% 62.80%
Operating margin 20.41% 49.26% 0.00%
Net margin 16.08% 12.70% (0.55%)
Free cash flow margin 19.21% 11.73% 0.00%
Return on equity 18.30% 26.18% 0.00%
Return on assets 11.22% 2.22% 0.00%
Return on invested capital 21.32% 0.00% 0.00%

Growth

Metric HLI VIRT Capital Markets median
Revenue growth (TTM) 1.72% 20.76% 21.02%
EPS growth (last fiscal year) 6.87% 72.73% —
Revenue growth, 5-year CAGR 11.40% 2.32% 18.16%
Net income growth, 5-year CAGR 6.36% (7.58%) 0.00%

Health

Metric HLI VIRT Capital Markets median
Debt to equity 0.00 0.87 0.08
Current ratio 1.36 0.45 1.51
Net debt to EBITDA (2.09) (1.76) (0.24)

Dividend

Metric HLI VIRT Capital Markets median
Dividend yield 1.76% 5.78% 2.20%
Payout ratio 0.59 0.69 0.00

Size

Metric HLI VIRT Capital Markets median
Market cap 8.88b 8.17b 724.58m

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