Federated Hermes (NYSE: FHI) is one of 59 publicly-traded companies in the “Investment advice” industry, but how does it contrast to its competitors? We will compare Federated Hermes to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.

Risk & Volatility

Federated Hermes has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Federated Hermes’ competitors have a beta of 1.16, indicating that their average stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Federated Hermes and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Federated Hermes $1.33 billion $272.34 million 13.50
Federated Hermes Competitors $1.44 billion $294.18 million 15.51

Federated Hermes’ competitors have higher revenue and earnings than Federated Hermes. Federated Hermes is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Federated Hermes pays an annual dividend of $1.08 per share and has a dividend yield of 3.0%. Federated Hermes pays out 40.1% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 3.5% and pay out 44.6% of their earnings in the form of a dividend.

Institutional & Insider Ownership

82.2% of Federated Hermes shares are held by institutional investors. Comparatively, 51.7% of shares of all “Investment advice” companies are held by institutional investors. 5.5% of Federated Hermes shares are held by company insiders. Comparatively, 20.4% of shares of all “Investment advice” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Federated Hermes and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federated Hermes 0 0 0 0 N/A
Federated Hermes Competitors 732 2617 2743 147 2.37

As a group, “Investment advice” companies have a potential upside of 1.86%. Given Federated Hermes’ competitors higher possible upside, analysts clearly believe Federated Hermes has less favorable growth aspects than its competitors.

Profitability

This table compares Federated Hermes and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federated Hermes 20.52% 28.65% 15.66%
Federated Hermes Competitors 12.68% 30.87% 8.45%

Summary

Federated Hermes competitors beat Federated Hermes on 8 of the 12 factors compared.

About Federated Hermes

Federated Investors, Inc. engages in the provision of investment management products and related financial services. It sponsors, markets and provides investment-related services to sponsored investment companies, Federated Funds, and Separate Accounts which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. The company was founded by John F. Donahue and Richard B. Fisher in October 1955 and is headquartered in Pittsburgh, PA.

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