Binah Capital Group (NASDAQ:BCG) versus Houlihan Lokey (NYSE:HLI) Head to Head Analysis

Binah Capital Group (NASDAQ:BCG) and Houlihan Lokey (NYSE:HLI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for Binah Capital Group and Houlihan Lokey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	1	0	0	0	1.00
Houlihan Lokey	0	5	7	0	2.58

Houlihan Lokey has a consensus price target of $160.44, suggesting a potential upside of 12.07%. Given Houlihan Lokey’s stronger consensus rating and higher possible upside, analysts clearly believe Houlihan Lokey is more favorable than Binah Capital Group.

Insider & Institutional Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 78.1% of Houlihan Lokey shares are owned by institutional investors. 7.8% of Binah Capital Group shares are owned by insiders. Comparatively, 22.5% of Houlihan Lokey shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Binah Capital Group has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Houlihan Lokey has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Binah Capital Group and Houlihan Lokey”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$187.14 million	0.10	$2.31 million	$0.18	6.11
Houlihan Lokey	$2.62 billion	3.80	$425.70 million	$5.96	24.02

Houlihan Lokey has higher revenue and earnings than Binah Capital Group. Binah Capital Group is trading at a lower price-to-earnings ratio than Houlihan Lokey, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Binah Capital Group and Houlihan Lokey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	2.17%	195.38%	5.95%
Houlihan Lokey	15.78%	19.94%	11.51%

Summary

Houlihan Lokey beats Binah Capital Group on 13 of the 14 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc. (NASDAQ: BCG) is a wealth management company that provides services and support to independent financial advisors and their clients in the United States. The company operates as a holding company for wealth management businesses serving individuals, families and institutions. Through its operating businesses, Binah Capital offers brokerage and investment advisory services, financial planning, retirement planning, insurance solutions and access to investment products. Its platform is designed to help independent advisors manage client relationships, develop practices and deliver portfolio and broader wealth management services.

About Houlihan Lokey

Houlihan Lokey, Inc. is a global investment bank headquartered in Los Angeles. Founded in 1972, the firm provides financial advice and related services to corporations, financial sponsors, governments and other organizations. The company’s main businesses include corporate finance, financial restructuring and financial and valuation advisory. Its services include advising on mergers and acquisitions, debt and equity financing, restructuring transactions, and business and asset valuations. Houlihan Lokey serves clients across the Americas, Europe, the Middle East and Asia-Pacific through an international office network.