Houlihan Lokey vs Stifel

This page compares Houlihan Lokey and Stifel, examining their business models, financial performance, and market context in a neutral, accessible overview. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

HLI

Metric

SF

$13.28B

Market Cap

$12.92B

9.09%

Potential Profit

5.00%

Hold

Analyst Rating

Buy

Investment Analysis

Houlihan Lokey

HLI

Pros

Houlihan Lokey consistently delivers high return on equity, recently above 19%, reflecting efficient capital use and profitability in its niche advisory segments.
The firm maintains a strong global footprint in mergers, restructuring, and valuation, with leadership in complex, high-value transactions across multiple regions.
Houlihan Lokey operates with a robust balance sheet, boasting zero debt and ample liquidity, which provides stability in volatile markets.

Considerations

Houlihan Lokey’s valuation multiples, such as price-to-earnings and price-to-sales, appear elevated relative to peers, potentially limiting near-term upside.
Revenue concentration in advisory services creates sensitivity to deal cycles, M&A activity, and economic downturns affecting transaction volumes.
The business model’s reliance on high-margin, people-intensive services may limit scalability compared to capital-markets-driven peers.

Stifel

SF

Pros

Stifel Financial benefits from a diversified revenue base across retail brokerage, investment banking, and asset management, reducing dependence on any single segment.
The company maintains a solid retail advisory network, providing recurring fee income and client stickiness in varying market conditions.
Stifel’s recent financial metrics indicate adequate liquidity and a manageable leverage profile, supporting operational flexibility.

Considerations

Stifel’s return on equity lags behind specialised advisory peers, reflecting lower profitability per unit of shareholder capital deployed.
Exposure to cyclical capital markets and retail brokerage introduces earnings volatility, particularly during market downturns or reduced trading activity.
The firm faces intense competition from both large, integrated banks and boutique advisors, potentially pressuring margins and market share.

About The Companies

Houlihan Lokey (HLI)

Houlihan Lokey Inc (HLI) is a specialist global investment bank known for advisory work in mergers and acquisitions, restructuring, valuation and capital markets. With a market-cap of around $13.6bn, it focuses on fee-based services rather than lending, so revenue depends heavily on deal flow and market activity. The firm often benefits from complex, distressed and cross-border assignments where expertise and sector knowledge command premium fees. Investors should know results can be cyclical: restructuring and distressed-advisory work may rise in downturns while M&A fees track broader economic confidence. The company’s balance sheet is generally light compared with banks, giving different risk dynamics, but competition and regulatory change are continual considerations. This summary is educational only and not personal investment advice — potential investors should assess their risk tolerance, review up-to-date financials and consider professional guidance before deciding.

Stifel (SF)

Stifel Financial Corp (ticker: SF) is a US-based financial services firm that combines wealth management, investment banking, trading and institutional services. With a market capitalisation of about $11.48bn, Stifel generates revenue from advisory fees, commissions, asset-management fees and capital-markets activities. The group has grown both organically and through acquisitions, which has expanded its branch network and product capabilities. Investors should note the cyclical nature of its businesses: trading volumes, equity markets and M&A activity influence short-term results, while wealth-management fee income can provide steadier revenue. Key considerations include regulatory oversight, integration risks from acquisitions, and sensitivity to market volatility and interest-rate moves. The company has historically returned capital to shareholders and targets profitable growth, but past trends are not guarantees of future performance. This is general, educational information; suitability depends on individual circumstances, risk tolerance and investment horizon. Investors seeking exposure to retail wealth management and capital markets should weigh potential growth against volatility and sector-specific risks.

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Comparison Snapshot