Houlihan Lokey, Inc. (HLI) vs XP Inc. (XP)

Houlihan Lokey, Inc. and XP Inc. are both Capital Markets companies. Houlihan Lokey, Inc. is the larger, with a market value of $10.2B against $7.6B — 1.3× the size. XP Inc. trades at the lower P/E: 7.7× against 24.5×. XP Inc. grew revenue faster over the last twelve months: 18.2% against −0.40%. XP Inc. has the higher net margin (27.8% vs 15.8%) and the lower return on invested capital (20.5% vs 22.0%). Both pay a dividend; XP Inc. yields more (2.56% vs 1.75%). Across the 21 metrics below, XP Inc. leads on 17 and Houlihan Lokey, Inc. on 4.

Valuation

Metric HLI XP Capital Markets median
P/E 24.46 7.69 14.35
P/S 3.86 2.11 2.07
P/B 4.28 1.55 1.36
Price to free cash flow 24.56 3.24 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.09% 13.01% (8.28%)
Free cash flow yield 4.07% 30.90% (1.12%)

Profitability

Metric HLI XP Capital Markets median
Gross margin 35.62% 100.00% 68.15%
Operating margin 20.27% 33.63% 0.00%
Net margin 15.80% 27.84% (0.34%)
Free cash flow margin 15.72% 65.15% 0.00%
Return on equity 17.73% 22.76% 0.00%
Return on assets 10.39% 1.37% 0.00%
Return on invested capital 22.02% 20.52% 0.00%

Growth

Metric HLI XP Capital Markets median
Revenue growth (TTM) (0.40%) 18.17% 19.72%
EPS growth (last fiscal year) 6.87% 13.73% 16.79%
Revenue growth, 5-year CAGR 11.40% 15.82% 17.41%
Net income growth, 5-year CAGR 6.36% 18.11% 0.00%

Health

Metric HLI XP Capital Markets median
Debt to equity 0.00 0.07 0.07
Current ratio 1.28 4.80 1.51
Net debt to EBITDA (2.09) (1.52) (0.03)

Dividend

Metric HLI XP Capital Markets median
Dividend yield 1.75% 2.56% 1.58%
Payout ratio 0.44 0.20 0.19

Size

Metric HLI XP Capital Markets median
Market cap 10.21b 7.64b 527.01m

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