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 businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, community ranking, media sentiment, valuation and risk.

Which has more volatility and risk, FHI or HLI?

Federated Hermes has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Houlihan Lokey has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

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 3.1%. Houlihan Lokey pays an annual dividend of $2.28 per share and has a dividend yield of 1.3%. Federated Hermes pays out 39.9% 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.

Does the media favor FHI or HLI?

In the previous week, Houlihan Lokey had 30 more articles in the media than Federated Hermes. MarketBeat recorded 47 mentions for Houlihan Lokey and 17 mentions for Federated Hermes. Houlihan Lokey's average media sentiment score of 0.85 beat Federated Hermes' score of 0.50 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	2 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Neutral
Houlihan Lokey	17 Very Positive mention(s)	7 Positive mention(s)	11 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher earnings and valuation, FHI or HLI?

Federated Hermes has higher earnings, but lower revenue than Houlihan Lokey. 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	$1.61B	2.02	$298.98M	$3.11	12.79
Houlihan Lokey	$1.91B	6.60	$280.30M	$5.24	34.72

Is FHI or HLI more profitable?

Federated Hermes has a net margin of 16.62% compared to Houlihan Lokey's net margin of 16.00%. Federated Hermes' return on equity of 29.85% beat Houlihan Lokey's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Federated Hermes	16.62%	29.85%	16.05%
Houlihan Lokey	16.00%	20.59%	12.41%

Do analysts prefer FHI or HLI?

Federated Hermes presently has a consensus price target of $42.17, suggesting a potential upside of 6.03%. Houlihan Lokey has a consensus price target of $194.40, suggesting a potential upside of 6.86%. Given Houlihan Lokey's higher probable upside, analysts plainly believe Houlihan Lokey is more favorable than Federated Hermes.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federated Hermes	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33
Houlihan Lokey	2 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	1.83

Do insiders and institutionals hold more shares of 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. 3.7% of Federated Hermes shares are owned by company insiders. Comparatively, 23.7% of Houlihan Lokey shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the MarketBeat Community favor FHI or HLI?

Houlihan Lokey received 262 more outperform votes than Federated Hermes when rated by MarketBeat users. Likewise, 60.37% of users gave Houlihan Lokey an outperform vote while only 33.33% of users gave Federated Hermes an outperform vote.

Company	Underperform	Outperform
Federated Hermes	Outperform Votes 32 33.33%	Underperform Votes 64 66.67%
Houlihan Lokey	Outperform Votes 294 60.37%	Underperform Votes 193 39.63%

Summary

Houlihan Lokey beats Federated Hermes on 11 of the 20 factors compared between the two stocks.