Houlihan Lokey, Inc. (HLI) vs TeraWulf Inc. (WULF)

Houlihan Lokey, Inc. and TeraWulf Inc. are both Capital Markets companies. Houlihan Lokey, Inc. and TeraWulf Inc. are of similar size ($8.9B and $8.3B). TeraWulf Inc. has negative trailing earnings, so its P/E is not meaningful; Houlihan Lokey, Inc. trades at 21.2×. TeraWulf Inc. grew revenue faster over the last twelve months: 14.7% against 1.72%. Houlihan Lokey, Inc. has the higher net margin (16.1% vs −1,179.9%) and the higher return on invested capital (21.3% vs −9.95%). Across the 19 metrics below, Houlihan Lokey, Inc. leads on 15 and TeraWulf Inc. on 4.

Valuation

Metric HLI WULF Capital Markets median
P/E 21.19 n/m 15.78
P/S 3.40 46.28 2.32
P/B 3.81 51.82 1.89
Price to free cash flow 17.70 n/m 6.25
EV/EBITDA 15.00 n/m 8.87
EV/Sales 3.27 61.12 2.28
Earnings yield 4.72% (27.76%) (3.77%)
Free cash flow yield 5.65% (31.40%) (1.49%)

Profitability

Metric HLI WULF Capital Markets median
Gross margin 35.68% 69.26% 62.80%
Operating margin 20.41% (250.37%) 0.00%
Net margin 16.08% (1,179.94%) (0.55%)
Free cash flow margin 19.21% (1,453.34%) 0.00%
Return on equity 18.30% (1,247.13%) 0.00%
Return on assets 11.22% (43.71%) 0.00%
Return on invested capital 21.32% (9.95%) 0.00%

Growth

Metric HLI WULF Capital Markets median
Revenue growth (TTM) 1.72% 14.65% 21.02%
EPS growth (last fiscal year) 6.87% (690.48%) —
Revenue growth, 5-year CAGR 11.40% 57.07% 18.16%
Net income growth, 5-year CAGR 6.36% 0.00% 0.00%

Health

Metric HLI WULF Capital Markets median
Debt to equity 0.00 35.34 0.08
Current ratio 1.36 0.75 1.51
Net debt to EBITDA (2.09) (24.16) (0.24)

Dividend

Metric HLI WULF Capital Markets median
Dividend yield 1.76% — 2.20%
Payout ratio 0.59 0.00 0.00

Size

Metric HLI WULF Capital Markets median
Market cap 8.88b 8.25b 724.58m

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