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AFG vs HLI

AFG
American Financial Group, Inc.
NEUTRAL
Price
$127.79
Market Cap
$10.66B
Sector
Financial Services
AI Confidence
65%
HLI
Houlihan Lokey, Inc.
BULLISH
Price
$159.71
Market Cap
$11.15B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
AFG
13.48
HLI
24.5
Forward P/E
AFG
11.26
HLI
18.73
P/B Ratio
AFG
2.25
HLI
4.85
P/S Ratio
AFG
1.33
HLI
4.21
EV/EBITDA
AFG
8.99
HLI
--

Profitability

Gross Margin
AFG
17.85%
HLI
94.63%
Operating Margin
AFG
12.72%
HLI
24.87%
Profit Margin
AFG
9.96%
HLI
16.91%
ROE
AFG
16.91%
HLI
20.47%
ROA
AFG
2.1%
HLI
12.08%

Growth

Revenue Growth
AFG
-0.8%
HLI
13.0%
Earnings Growth
AFG
19.5%
HLI
22.3%

Financial Health

Debt/Equity
AFG
0.43
HLI
0.22
Current Ratio
AFG
2.16
HLI
1.49
Quick Ratio
AFG
1.0
HLI
1.49

Dividends

Dividend Yield
AFG
2.74%
HLI
1.5%
Payout Ratio
AFG
33.58%
HLI
36.41%

AI Verdict

AFG NEUTRAL

AFG's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. The stock trades below its growth-based intrinsic value of $279.66 but above the conservative Graham Number of $109.99, suggesting moderate undervaluation with structural risks. Profitability metrics like ROE (16.91%) and low Debt/Equity (0.43) are strong, but weak revenue growth (-0.80% YoY) and bearish insider activity weigh on momentum. Analysts recommend a 'buy' with a target price of $143.83, implying 12.5% upside, though recent price performance has been flat to negative in the short term.

Strengths
Strong return on equity (ROE) of 16.91%, above sector average and indicating efficient capital use
Low debt-to-equity ratio of 0.43, well below sector average of 1.70, signaling conservative leverage
Attractive dividend yield of 2.74% with a sustainable payout ratio of 33.58%
Risks
Piotroski F-Score of 4/9 indicates only stable financial health, with room for deterioration
Revenue declining YoY (-0.80%), raising concerns about top-line sustainability despite earnings growth
Missing Altman Z-Score prevents clear assessment of bankruptcy risk; absence is a red flag
HLI BULLISH

HLI exhibits a stable financial profile with a Piotroski F-Score of 4/9 and a very conservative debt-to-equity ratio of 0.22. While the current price of $159.71 is significantly above the Graham Number ($69.49), it remains well below the growth-based intrinsic value of $192.34, suggesting the market is pricing in high-quality growth. The company demonstrates exceptional earnings consistency, beating estimates in 3 of the last 4 quarters with strong YoY earnings growth of 22.3%. Despite bearish technicals and insider selling, the fundamental profitability and growth trajectory support a bullish long-term outlook.

Strengths
Strong profitability with ROE of 20.47% and ROA of 12.08%
Very low leverage with a Debt/Equity ratio of 0.22
Consistent earnings beat track record (3/4 recent quarters)
Risks
Bearish technical trend (0/100) indicating short-term momentum weakness
Negative insider sentiment with recent selling activity
Significant premium to book value (P/B 4.85)

Compare Another Pair

AFG vs HLI: Head-to-Head Comparison

This page compares American Financial Group, Inc. (AFG) and Houlihan Lokey, Inc. (HLI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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