RILY vs HLI

For growth investors, Houlihan Lokey, Inc.

(HLI) is the stronger pick with 24. 8% revenue growth year-over-year, versus -11. 5% for BRC Group Holdings, Inc. (RILY). BRC Group Holdings, Inc. (RILY) offers the better valuation at 1. 2x trailing P/E, making it the more compelling value choice. Analysts rate Houlihan Lokey, Inc. (HLI) a "Buy" — based on 15 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, BRC Group Holdings, Inc.

(RILY) is the cheapest at 1. 2x versus Houlihan Lokey, Inc. at 25. 8x.

Over the past 5 years, Houlihan Lokey, Inc.

(HLI) delivered a total return of +142. 2%, compared to -62. 9% for BRC Group Holdings, Inc. (RILY). Over 10 years, the gap is even starker: HLI returned +599. 6% versus RILY's +240. 6%. 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), Houlihan Lokey, Inc.

(HLI) is the lower-risk stock at 0. 94β versus BRC Group Holdings, Inc. 's 2. 03β — meaning RILY is approximately 116% more volatile than HLI relative to the S&P 500.

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

(HLI) is pulling ahead at 24. 8% versus -11. 5% for BRC Group Holdings, Inc. (RILY). On earnings-per-share growth, the picture is similar: BRC Group Holdings, Inc. grew EPS 129. 9% year-over-year, compared to 41. 6% for Houlihan Lokey, 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.

BRC Group Holdings, Inc.

(RILY) is the more profitable company, earning 29. 8% net margin versus 16. 7% for Houlihan Lokey, Inc. — meaning it keeps 29. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HLI leads at 21. 0% versus 14. 6% for RILY. At the gross margin level — before operating expenses — RILY leads at 65. 0%, 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.

In this comparison, HLI (1.

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

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, +599. 6% 10Y return). BRC Group Holdings, Inc. (RILY) carries a higher beta of 2. 03 — 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: +599. 6%, RILY: +240. 6%), 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.

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.

In terms of investment character: RILY is a small-cap deep-value stock; HLI is a mid-cap high-growth stock. HLI pays a dividend while RILY 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.