FCN vs HLI

For growth investors, Houlihan Lokey, Inc.

(HLI) is the stronger pick with 24. 8% revenue growth year-over-year, versus 2. 4% for FTI Consulting, Inc. (FCN). FTI Consulting, Inc. (FCN) offers the better valuation at 19. 5x trailing P/E (17. 2x forward), making it the more compelling value choice. Analysts rate FTI Consulting, Inc. (FCN) a "Buy" — based on 13 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.

On trailing P/E, FTI Consulting, Inc.

(FCN) is the cheapest at 19. 5x versus Houlihan Lokey, Inc. at 25. 3x. On forward P/E, FTI Consulting, Inc. is actually cheaper at 17. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Houlihan Lokey, Inc. wins at 1. 21x versus FTI Consulting, Inc. 's 2. 22x — a reasonable growth-adjusted valuation.

Over the past 5 years, Houlihan Lokey, Inc.

(HLI) delivered a total return of +135. 9%, compared to +11. 4% for FTI Consulting, Inc. (FCN). Over 10 years, the gap is even starker: HLI returned +580. 9% versus FCN's +293. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), FTI Consulting, Inc.

(FCN) is the lower-risk stock at 0. 09β versus Houlihan Lokey, Inc. 's 0. 94β — meaning HLI is approximately 950% more volatile than FCN relative to the S&P 500. On balance sheet safety, Houlihan Lokey, Inc. (HLI) carries a lower debt/equity ratio of 20% versus 34% for FTI Consulting, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Houlihan Lokey, Inc.

(HLI) is pulling ahead at 24. 8% versus 2. 4% for FTI Consulting, Inc. (FCN). On earnings-per-share growth, the picture is similar: Houlihan Lokey, Inc. grew EPS 41. 6% year-over-year, compared to 5. 5% for FTI Consulting, 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.

Houlihan Lokey, Inc.

(HLI) is the more profitable company, earning 16. 7% net margin versus 7. 1% for FTI Consulting, 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 10. 9% for FCN. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Houlihan Lokey, Inc. (HLI) is the more undervalued stock at a PEG of 1. 21x versus FTI Consulting, Inc. 's 2. 22x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, FTI Consulting, Inc. (FCN) trades at 17. 2x forward P/E versus 19. 1x for Houlihan Lokey, Inc. — 1. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HLI: 35. 8% to $200. 00.

In this comparison, HLI (1.

6% yield) pays a dividend. FCN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, FTI Consulting, Inc.

(FCN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 09), +293. 0% 10Y return). Both have compounded well over 10 years (FCN: +293. 0%, HLI: +580. 9%), 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.

These companies operate in different sectors (FCN (Industrials) and HLI (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FCN is a small-cap quality compounder stock; HLI is a mid-cap high-growth stock. HLI pays a dividend while FCN does not, making them suitable for different income and tax situations. 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.