SF vs HLI

For growth investors, Houlihan Lokey, Inc.

(HLI) is the stronger pick with 24. 8% revenue growth year-over-year, versus 6. 9% for Stifel Financial Corp. (SF). Stifel Financial Corp. (SF) offers the better valuation at 13. 3x trailing P/E (12. 5x forward), making it the more compelling value choice. Analysts rate Stifel Financial Corp. (SF) a "Buy" — based on 22 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, Stifel Financial Corp.

(SF) is the cheapest at 13. 3x versus Houlihan Lokey, Inc. at 25. 3x. On forward P/E, Stifel Financial Corp. is actually cheaper at 12. 5x. 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 Stifel Financial Corp. 's 1. 75x — a reasonable growth-adjusted valuation.

Over the past 5 years, Houlihan Lokey, Inc.

(HLI) delivered a total return of +135. 9%, compared to +78. 1% for Stifel Financial Corp. (SF). Over 10 years, the gap is even starker: HLI returned +580. 9% versus SF's +522. 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 Stifel Financial Corp. 's 1. 23β — meaning SF is approximately 31% 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 36% for Stifel Financial Corp. — 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 6. 9% for Stifel Financial Corp. (SF). On earnings-per-share growth, the picture is similar: Houlihan Lokey, Inc. grew EPS 41. 6% year-over-year, compared to -5. 9% for Stifel Financial Corp.. 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 10. 9% for Stifel Financial Corp. — 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 13. 8% for SF. At the gross margin level — before operating expenses — SF leads at 86. 6%, 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 Stifel Financial Corp. 's 1. 75x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Stifel Financial Corp. (SF) trades at 12. 5x forward P/E versus 19. 1x for Houlihan Lokey, Inc. — 6. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HLI: 35. 8% to $200. 00.

All stocks in this comparison pay dividends.

Stifel Financial Corp. (SF) offers the highest yield at 2. 4%, versus 1. 6% for Houlihan Lokey, Inc. (HLI).

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). Both have compounded well over 10 years (HLI: +580. 9%, SF: +522. 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: SF is a mid-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.