STEP
StepStone Group Inc.
Asset Management
Market Cap$2.09B
5Y Perf.+101.5%
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Stock Comparison
STEP vs HLI
Revenue, margins, valuation, and 5-year total return — side by side.
HLI
Houlihan Lokey, Inc.
Financial - Capital Markets
Market Cap$10.27B
5Y Perf.+149.3%
STEP vs HLI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | STEP | HLI |
|---|---|---|
| Industry | Asset Management | Financial - Capital Markets |
| Market Cap | $2.09B | $10.27B |
| Revenue (TTM) | $1.17B | $2.39B |
| Net Income (TTM) | $-547M | $448M |
| Gross Margin | -7.6% | 38.5% |
| Operating Margin | -21.3% | 21.0% |
| Forward P/E | 25.6x | 19.1x |
| Total Debt | $383M | $438M |
| Cash & Equiv. | $289M | $971M |
STEP vs HLI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
STEP
HLI
| Stock | Sep 20 | May 26 | Return |
|---|---|---|---|
| StepStone Group Inc. (STEP) | 100 | 201.5 | +101.5% |
| Houlihan Lokey, Inc. (HLI) | 100 | 249.3 | +149.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: STEP vs HLI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: STEP leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Houlihan Lokey, Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
STEP
StepStone Group Inc.
The Banking Pick
STEP carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 65.1%, EPS growth -376.9%
- 65.1% NII/revenue growth vs HLI's 24.8%
- Efficiency ratio 0.1% vs HLI's 0.2% (lower = leaner)
Best for: growth exposure
HLI
Houlihan Lokey, Inc.
The Banking Pick
HLI is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 7 yrs, beta 0.94, yield 1.6%
- 5.8% 10Y total return vs STEP's 134.3%
- Lower volatility, beta 0.94, Low D/E 20.1%, current ratio 1.38x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | STEP | 65.1% NII/revenue growth vs HLI's 24.8% |
| Value | HLI | Lower P/E (19.1x vs 25.6x) |
| Quality / Margins | STEP | Efficiency ratio 0.1% vs HLI's 0.2% (lower = leaner) |
| Stability / Safety | HLI | Beta 0.94 vs STEP's 1.73, lower leverage |
| Dividends | STEP | 2.0% yield, 4-year raise streak, vs HLI's 1.6% |
| Momentum (1Y) | STEP | +4.0% vs HLI's -8.2% |
| Efficiency (ROA) | STEP | Efficiency ratio 0.1% vs HLI's 0.2% |
STEP vs HLI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
STEP vs HLI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHLILAGGINGSTEP
STEPStepStone Group Inc.
1leads
HLIHoulihan Lokey, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs STEPMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HLI4/5
Valuation MetricsMultiples, price ratios, and targets
STEP3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HLI7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
HLI2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
HLI leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
HLI is the larger business by revenue, generating $2.4B annually — 2.0x STEP's $1.2B. HLI is the more profitable business, keeping 16.7% of every revenue dollar as net income compared to STEP's -15.3%.
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| RevenueTrailing 12 months | $1.2B | $2.4B |
| EBITDAEarnings before interest/tax | -$948M | $591M |
| Net IncomeAfter-tax profit | -$547M | $448M |
| Free Cash FlowCash after capex | $19M | $739M |
| Gross MarginGross profit ÷ Revenue | -7.6% | +38.5% |
| Operating MarginEBIT ÷ Revenue | -21.3% | +21.0% |
| Net MarginNet income ÷ Revenue | -15.3% | +16.7% |
| FCF MarginFCF ÷ Revenue | +5.1% | +33.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +40.6% | +22.3% |
HLI leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
STEP leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| Market CapShares × price | $2.1B | $10.3B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $9.7B |
| Trailing P/EPrice ÷ TTM EPS | -21.28x | 25.30x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.63x | 19.12x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.61x |
| EV / EBITDAEnterprise value multiple | — | 17.95x |
| Price / SalesMarket cap ÷ Revenue | 1.78x | 4.30x |
| Price / BookPrice ÷ Book value/share | 2.15x | 4.65x |
| Price / FCFMarket cap ÷ FCF | 34.98x | 12.70x |
STEP leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
HLI leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
HLI delivers a 20.1% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $-10 for STEP. HLI carries lower financial leverage with a 0.20x debt-to-equity ratio, signaling a more conservative balance sheet compared to STEP's 0.22x. On the Piotroski fundamental quality scale (0–9), HLI scores 7/9 vs STEP's 4/9, reflecting strong financial health.
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| ROE (TTM)Return on equity | -9.8% | +20.1% |
| ROA (TTM)Return on assets | -10.4% | +11.9% |
| ROICReturn on invested capital | -8.7% | +15.5% |
| ROCEReturn on capital employed | -10.6% | +20.1% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 0.22x | 0.20x |
| Net DebtTotal debt minus cash | $93M | -$533M |
| Cash & Equiv.Liquid assets | $289M | $971M |
| Total DebtShort + long-term debt | $383M | $438M |
| Interest CoverageEBIT ÷ Interest expense | -126.38x | — |
HLI leads this category, winning 7 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — STEP and HLI each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HLI five years ago would be worth $23,585 today (with dividends reinvested), compared to $17,666 for STEP. Over the past 12 months, STEP leads with a +4.0% total return vs HLI's -8.2%. The 3-year compound annual growth rate (CAGR) favors STEP at 37.9% vs HLI's 21.3% — a key indicator of consistent wealth creation.
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| YTD ReturnYear-to-date | -19.1% | -16.2% |
| 1-Year ReturnPast 12 months | +4.0% | -8.2% |
| 3-Year ReturnCumulative with dividends | +162.1% | +78.5% |
| 5-Year ReturnCumulative with dividends | +76.7% | +135.9% |
| 10-Year ReturnCumulative with dividends | +134.3% | +580.9% |
| CAGR (3Y)Annualised 3-year return | +37.9% | +21.3% |
Evenly matched — STEP and HLI each lead in 3 of 6 comparable metrics.
Risk & Volatility
HLI leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
HLI is the less volatile stock with a 0.94 beta — it tends to amplify market swings less than STEP's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.73x | 0.94x |
| 52-Week HighHighest price in past year | $77.80 | $211.78 |
| 52-Week LowLowest price in past year | $40.58 | $134.41 |
| % of 52W HighCurrent price vs 52-week peak | +68.9% | +69.5% |
| RSI (14)Momentum oscillator 0–100 | 60.2 | 41.5 |
| Avg Volume (50D)Average daily shares traded | 1.1M | 577K |
HLI leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — STEP and HLI each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates STEP as "Buy" and HLI as "Buy". Consensus price targets imply 35.8% upside for HLI (target: $200) vs 35.2% for STEP (target: $73). For income investors, STEP offers the higher dividend yield at 1.99% vs HLI's 1.63%.
| Metric | STEPStepStone Group I… | HLIHoulihan Lokey, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $72.50 | $200.00 |
| # AnalystsCovering analysts | 8 | 15 |
| Dividend YieldAnnual dividend ÷ price | +2.0% | +1.6% |
| Dividend StreakConsecutive years of raises | 4 | 7 |
| Dividend / ShareAnnual DPS | $1.07 | $2.41 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.5% |
Evenly matched — STEP and HLI each lead in 1 of 2 comparable metrics.
Key Takeaway
HLI leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). STEP leads in 1 (Valuation Metrics). 2 tied.
Best OverallHoulihan Lokey, Inc. (HLI)Leads 3 of 6 categories
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STEP vs HLI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is STEP or HLI a better buy right now?
For growth investors, StepStone Group Inc.
(STEP) is the stronger pick with 65. 1% revenue growth year-over-year, versus 24. 8% for Houlihan Lokey, Inc. (HLI). Houlihan Lokey, Inc. (HLI) offers the better valuation at 25. 3x trailing P/E (19. 1x forward), making it the more compelling value choice. Analysts rate StepStone Group Inc. (STEP) a "Buy" — based on 8 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — STEP or HLI?
On forward P/E, Houlihan Lokey, Inc.
is actually cheaper at 19. 1x.
03Which is the better long-term investment — STEP or HLI?
Over the past 5 years, Houlihan Lokey, Inc.
(HLI) delivered a total return of +135. 9%, compared to +76. 7% for StepStone Group Inc. (STEP). Over 10 years, the gap is even starker: HLI returned +580. 9% versus STEP's +134. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — STEP or HLI?
By beta (market sensitivity over 5 years), Houlihan Lokey, Inc.
(HLI) is the lower-risk stock at 0. 94β versus StepStone Group Inc. 's 1. 73β — meaning STEP is approximately 85% more volatile than HLI relative to the S&P 500. On balance sheet safety, Houlihan Lokey, Inc. (HLI) carries a lower debt/equity ratio of 20% versus 22% for StepStone Group Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — STEP or HLI?
By revenue growth (latest reported year), StepStone Group Inc.
(STEP) is pulling ahead at 65. 1% versus 24. 8% for Houlihan Lokey, Inc. (HLI). On earnings-per-share growth, the picture is similar: Houlihan Lokey, Inc. grew EPS 41. 6% year-over-year, compared to -376. 9% for StepStone Group Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — STEP or HLI?
Houlihan Lokey, Inc.
(HLI) is the more profitable company, earning 16. 7% net margin versus -15. 3% for StepStone Group Inc. — meaning it keeps 16. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HLI leads at 21. 0% versus -21. 3% for STEP. At the gross margin level — before operating expenses — HLI leads at 38. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is STEP or HLI more undervalued right now?
On forward earnings alone, Houlihan Lokey, Inc.
(HLI) trades at 19. 1x forward P/E versus 25. 6x for StepStone Group Inc. — 6. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HLI: 35. 8% to $200. 00.
08Which pays a better dividend — STEP or HLI?
All stocks in this comparison pay dividends.
StepStone Group Inc. (STEP) offers the highest yield at 2. 0%, versus 1. 6% for Houlihan Lokey, Inc. (HLI).
09Is STEP or HLI better for a retirement portfolio?
For long-horizon retirement investors, Houlihan Lokey, Inc.
(HLI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 94), 1. 6% yield, +580. 9% 10Y return). StepStone Group Inc. (STEP) carries a higher beta of 1. 73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HLI: +580. 9%, STEP: +134. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between STEP and HLI?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
- Sector: Financial Services
- Market Cap > $100B
- Revenue Growth > 32%
- Dividend Yield > 0.7%
Revenue Growth>
%
(STEP: 65.1% · HLI: 24.8%)You Might Also Compare
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