Federated Hermes (FHI) Competitors

Federated Hermes (NYSE:FHI) and Houlihan Lokey (NYSE:HLI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, community ranking, media sentiment, earnings, risk and institutional ownership.

Which has more risk & volatility, FHI or HLI?

Federated Hermes has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Houlihan Lokey has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Does the media favor FHI or HLI?

In the previous week, Federated Hermes had 3 more articles in the media than Houlihan Lokey. MarketBeat recorded 14 mentions for Federated Hermes and 11 mentions for Houlihan Lokey. Houlihan Lokey's average media sentiment score of 1.58 beat Federated Hermes' score of 1.29 indicating that Houlihan Lokey is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Federated Hermes	10 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Houlihan Lokey	10 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Do analysts recommend FHI or HLI?

Federated Hermes presently has a consensus target price of $42.17, suggesting a potential upside of 2.45%. Houlihan Lokey has a consensus target price of $192.00, suggesting a potential upside of 15.59%. Given Houlihan Lokey's stronger consensus rating and higher possible upside, analysts clearly believe Houlihan Lokey is more favorable than Federated Hermes.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federated Hermes	1 Sell rating(s)	3 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.17
Houlihan Lokey	0 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the MarketBeat Community believe in FHI or HLI?

Houlihan Lokey received 261 more outperform votes than Federated Hermes when rated by MarketBeat users. Likewise, 60.37% of users gave Houlihan Lokey an outperform vote while only 34.95% of users gave Federated Hermes an outperform vote.

Company	Underperform	Outperform
Federated Hermes	Outperform Votes 36 34.95%	Underperform Votes 67 65.05%
Houlihan Lokey	Outperform Votes 297 60.37%	Underperform Votes 195 39.63%

Is FHI or HLI more profitable?

Federated Hermes has a net margin of 16.44% compared to Houlihan Lokey's net margin of 16.00%. Federated Hermes' return on equity of 30.31% beat Houlihan Lokey's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Federated Hermes	16.44%	30.31%	16.21%
Houlihan Lokey	16.00%	20.04%	12.06%

Which has stronger earnings and valuation, FHI or HLI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federated Hermes	$1.63B	2.05	$268.31M	$3.19	12.90
Houlihan Lokey	$2.24B	5.19	$280.30M	$5.24	31.70

Do insiders and institutionals believe in FHI or HLI?

75.9% of Federated Hermes shares are owned by institutional investors. Comparatively, 78.1% of Houlihan Lokey shares are owned by institutional investors. 3.8% of Federated Hermes shares are owned by insiders. Comparatively, 23.7% of Houlihan Lokey shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Is FHI or HLI a better dividend stock?

Federated Hermes pays an annual dividend of $1.24 per share and has a dividend yield of 3.0%. Houlihan Lokey pays an annual dividend of $2.28 per share and has a dividend yield of 1.4%. Federated Hermes pays out 38.9% of its earnings in the form of a dividend. Houlihan Lokey pays out 43.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Federated Hermes is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Houlihan Lokey beats Federated Hermes on 13 of the 20 factors compared between the two stocks.