RZC
7.125% Fixed-Rate Reset Subordinated Debentures due 2052
Insurance - Diversified
Market Cap$1.70B
5Y Perf.+0.2%
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Stock Comparison
RZC vs HLI
Revenue, margins, valuation, and 5-year total return — side by side.
HLI
Houlihan Lokey, Inc.
Financial - Capital Markets
Market Cap$10.71B
5Y Perf.+71.8%
RZC vs HLI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RZC | HLI |
|---|---|---|
| Industry | Insurance - Diversified | Financial - Capital Markets |
| Market Cap | $1.70B | $10.71B |
| Revenue (TTM) | $23.41B | $2.39B |
| Net Income (TTM) | $1.18B | $448M |
| Gross Margin | 16.8% | 38.5% |
| Operating Margin | 6.6% | 21.0% |
| Forward P/E | 1.4x | 19.9x |
| Total Debt | $5.71B | $438M |
| Cash & Equiv. | $4.17B | $971M |
RZC vs HLI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RZC
HLI
| Stock | Oct 22 | May 26 | Return |
|---|---|---|---|
| 7.125% Fixed-Rate R… (RZC) | 100 | 100.2 | +0.2% |
| Houlihan Lokey, Inc. (HLI) | 100 | 171.8 | +71.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RZC vs HLI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: RZC leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and capital preservation and lower volatility. Houlihan Lokey, Inc. is the stronger pick specifically for growth and revenue expansion and profitability and margin quality. As sector peers, any of these can serve as alternatives in the same allocation.
RZC
7.125% Fixed-Rate Reset Subordinated Debentures due 2052
The Insurance Pick
RZC carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 18 yrs, beta 0.12, yield 14.2%
- Lower volatility, beta 0.12, Low D/E 42.1%
- PEG 0.06 vs HLI's 1.26
Best for: income & stability and sleep-well-at-night
HLI
Houlihan Lokey, Inc.
The Banking Pick
HLI is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 24.8%, EPS growth 41.6%
- 6.0% 10Y total return vs RZC's 25.3%
- 24.8% NII/revenue growth vs RZC's 3.4%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HLI | 24.8% NII/revenue growth vs RZC's 3.4% |
| Value | RZC | Lower P/E (1.4x vs 19.9x), PEG 0.06 vs 1.26 |
| Quality / Margins | HLI | 16.7% margin vs RZC's 5.0% |
| Stability / Safety | RZC | Beta 0.12 vs HLI's 0.94 |
| Dividends | RZC | 14.2% yield, 18-year raise streak, vs HLI's 1.6% |
| Momentum (1Y) | RZC | +4.3% vs HLI's -5.1% |
| Efficiency (ROA) | HLI | 11.9% ROA vs RZC's 0.8%, ROIC 15.5% vs 8.3% |
RZC vs HLI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
RZC vs HLI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLRZCLAGGINGHLI
HLIHoulihan Lokey, Inc.
3leads
RZC7.125% Fixed-Rate Res…
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6 Total Categories
CATEGORYLEADERvs HLIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HLI4/5
Valuation MetricsMultiples, price ratios, and targets
RZC6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HLI7/7
Total Returns1Y, 3Y, 5Y total returns with dividends
HLI4/6
Risk & VolatilityBeta, volatility, and downside exposure
RZC2/2
Analyst OutlookRatings, price targets, and dividends
RZC2/2
Income & Cash Flow (Last 12 Months)
HLI leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
RZC is the larger business by revenue, generating $23.4B annually — 9.8x HLI's $2.4B. HLI is the more profitable business, keeping 16.7% of every revenue dollar as net income compared to RZC's 5.0%.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| RevenueTrailing 12 months | $23.4B | $2.4B |
| EBITDAEarnings before interest/tax | $1.9B | $591M |
| Net IncomeAfter-tax profit | $1.2B | $448M |
| Free Cash FlowCash after capex | $4.1B | $739M |
| Gross MarginGross profit ÷ Revenue | +16.8% | +38.5% |
| Operating MarginEBIT ÷ Revenue | +6.6% | +21.0% |
| Net MarginNet income ÷ Revenue | +5.0% | +16.7% |
| FCF MarginFCF ÷ Revenue | +17.5% | +33.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +21.9% | — |
| EPS Growth (YoY)Latest quarter vs prior year | +2.1% | +22.3% |
HLI leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
RZC leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 1.4x trailing earnings, RZC trades at a 95% valuation discount to HLI's 26.4x P/E. Adjusting for growth (PEG ratio), RZC offers better value at 0.06x vs HLI's 1.67x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| Market CapShares × price | $1.7B | $10.7B |
| Enterprise ValueMkt cap + debt − cash | $3.2B | $10.2B |
| Trailing P/EPrice ÷ TTM EPS | 1.43x | 26.37x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 19.92x |
| PEG RatioP/E ÷ EPS growth rate | 0.06x | 1.67x |
| EV / EBITDAEnterprise value multiple | 2.05x | 18.75x |
| Price / SalesMarket cap ÷ Revenue | 0.07x | 4.48x |
| Price / BookPrice ÷ Book value/share | 0.12x | 4.84x |
| Price / FCFMarket cap ÷ FCF | 0.42x | 13.24x |
RZC leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
HLI leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
HLI delivers a 20.1% return on equity — every $100 of shareholder capital generates $20 in annual profit, vs $9 for RZC. HLI carries lower financial leverage with a 0.20x debt-to-equity ratio, signaling a more conservative balance sheet compared to RZC's 0.42x.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| ROE (TTM)Return on equity | +9.4% | +20.1% |
| ROA (TTM)Return on assets | +0.8% | +11.9% |
| ROICReturn on invested capital | +8.3% | +15.5% |
| ROCEReturn on capital employed | +1.1% | +20.1% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.42x | 0.20x |
| Net DebtTotal debt minus cash | $1.5B | -$533M |
| Cash & Equiv.Liquid assets | $4.2B | $971M |
| Total DebtShort + long-term debt | $5.7B | $438M |
| Interest CoverageEBIT ÷ Interest expense | 5.21x | — |
HLI leads this category, winning 7 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
HLI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HLI five years ago would be worth $24,153 today (with dividends reinvested), compared to $12,535 for RZC. Over the past 12 months, RZC leads with a +4.3% total return vs HLI's -5.1%. The 3-year compound annual growth rate (CAGR) favors HLI at 22.9% vs RZC's 6.1% — a key indicator of consistent wealth creation.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| YTD ReturnYear-to-date | +1.2% | -12.6% |
| 1-Year ReturnPast 12 months | +4.3% | -5.1% |
| 3-Year ReturnCumulative with dividends | +19.4% | +85.7% |
| 5-Year ReturnCumulative with dividends | +25.3% | +141.5% |
| 10-Year ReturnCumulative with dividends | +25.3% | +603.4% |
| CAGR (3Y)Annualised 3-year return | +6.1% | +22.9% |
HLI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
RZC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
RZC is the less volatile stock with a 0.12 beta — it tends to amplify market swings less than HLI's 0.94 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RZC currently trades 96.5% from its 52-week high vs HLI's 72.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.12x | 0.94x |
| 52-Week HighHighest price in past year | $26.29 | $211.78 |
| 52-Week LowLowest price in past year | $25.01 | $134.41 |
| % of 52W HighCurrent price vs 52-week peak | +96.5% | +72.5% |
| RSI (14)Momentum oscillator 0–100 | 48.0 | 36.6 |
| Avg Volume (50D)Average daily shares traded | 91K | 606K |
RZC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
RZC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
For income investors, RZC offers the higher dividend yield at 14.18% vs HLI's 1.57%.
| Metric | RZC7.125% Fixed-Rate… | HLIHoulihan Lokey, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $200.00 |
| # AnalystsCovering analysts | — | 15 |
| Dividend YieldAnnual dividend ÷ price | +14.2% | +1.6% |
| Dividend StreakConsecutive years of raises | 18 | 7 |
| Dividend / ShareAnnual DPS | $3.60 | $2.41 |
| Buyback YieldShare repurchases ÷ mkt cap | +10.2% | +0.5% |
RZC leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
HLI leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RZC leads in 3 (Valuation Metrics, Risk & Volatility).
Best Overall7.125% Fixed-Rate Reset Sub… (RZC)Leads 3 of 6 categories
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RZC vs HLI: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RZC or HLI a better buy right now?
For growth investors, Houlihan Lokey, Inc.
(HLI) is the stronger pick with 24. 8% revenue growth year-over-year, versus 3. 4% for 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC). 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) offers the better valuation at 1. 4x 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.
02Which has the better valuation — RZC or HLI?
On trailing P/E, 7.
125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) is the cheapest at 1. 4x versus Houlihan Lokey, Inc. at 26. 4x.
03Which is the better long-term investment — RZC or HLI?
Over the past 5 years, Houlihan Lokey, Inc.
(HLI) delivered a total return of +141. 5%, compared to +25. 3% for 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC). Over 10 years, the gap is even starker: HLI returned +603. 4% versus RZC's +25. 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 — RZC or HLI?
By beta (market sensitivity over 5 years), 7.
125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) is the lower-risk stock at 0. 12β versus Houlihan Lokey, Inc. 's 0. 94β — meaning HLI is approximately 691% more volatile than RZC relative to the S&P 500. On balance sheet safety, Houlihan Lokey, Inc. (HLI) carries a lower debt/equity ratio of 20% versus 42% for 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 — giving it more financial flexibility in a downturn.
05Which is growing faster — RZC or HLI?
By revenue growth (latest reported year), Houlihan Lokey, Inc.
(HLI) is pulling ahead at 24. 8% versus 3. 4% for 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC). On earnings-per-share growth, the picture is similar: 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 grew EPS 64. 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.
06Which has better profit margins — RZC or HLI?
Houlihan Lokey, Inc.
(HLI) is the more profitable company, earning 16. 7% net margin versus 5. 2% for 7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 — 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 6. 8% for RZC. 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.
07Which pays a better dividend — RZC or HLI?
All stocks in this comparison pay dividends.
7. 125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) offers the highest yield at 14. 2%, versus 1. 6% for Houlihan Lokey, Inc. (HLI).
08Is RZC or HLI better for a retirement portfolio?
For long-horizon retirement investors, 7.
125% Fixed-Rate Reset Subordinated Debentures due 2052 (RZC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 12), 14. 2% yield). Both have compounded well over 10 years (RZC: +25. 3%, HLI: +603. 4%), 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.
09What are the main differences between RZC 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.
In terms of investment character: RZC is a small-cap deep-value stock; HLI is a mid-cap high-growth stock. 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.
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Revenue Growth>
%
(RZC: 21.9% · HLI: 24.8%)Net Margin>
%
(RZC: 5.0% · HLI: 16.7%)P/E Ratio<
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