RILY vs MS vs GS 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 Morgan Stanley (MS) a "Buy" — based on 52 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. 3x. On forward P/E, The Goldman Sachs Group, Inc. is actually cheaper at 15. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Goldman Sachs Group, Inc. wins at 1. 13x versus Morgan Stanley's 1. 83x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Goldman Sachs Group, Inc.

(GS) delivered a total return of +171. 1%, compared to -62. 0% for BRC Group Holdings, Inc. (RILY). Over 10 years, the gap is even starker: MS returned +739. 4% versus RILY's +252. 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), 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. On balance sheet safety, Houlihan Lokey, Inc. (HLI) carries a lower debt/equity ratio of 20% versus 5% for The Goldman Sachs Group, 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 -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 11. 3% for The Goldman Sachs Group, 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. 5% for GS. 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.

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, The Goldman Sachs Group, Inc. (GS) is the more undervalued stock at a PEG of 1. 13x versus Morgan Stanley's 1. 83x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Goldman Sachs Group, Inc. (GS) trades at 15. 8x forward P/E versus 19. 1x for Houlihan Lokey, Inc. — 3. 3x 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, MS (2.

0% yield), HLI (1. 6% yield), GS (1. 4% yield) pay 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, +580. 9% 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: +580. 9%, RILY: +252. 0%), 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; MS is a large-cap high-growth stock; GS is a large-cap high-growth stock; HLI is a mid-cap high-growth stock. MS, GS, HLI pay 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.