Federated Hermes, Inc. (FHI) vs Hamilton Lane Inc. (HLNE)

Federated Hermes, Inc. and Hamilton Lane Inc. are both Asset Management companies. Federated Hermes, Inc. and Hamilton Lane Inc. are of similar size ($4.7B and $4.3B). Federated Hermes, Inc. trades at the lower P/E: 10.7× against 13.0×. Hamilton Lane Inc. grew revenue faster over the last twelve months: 24.0% against 15.0%. Hamilton Lane Inc. has the higher net margin (32.1% vs 20.3%) and the lower return on invested capital (14.5% vs 25.2%). Both pay a dividend; Federated Hermes, Inc. yields more (3.45% vs 1.55%). Across the 22 metrics below, Federated Hermes, Inc. leads on 13 and Hamilton Lane Inc. on 9.

Valuation

Metric FHI HLNE Asset Management median
P/E 10.75 13.00 14.62
P/S 2.15 4.17 2.97
P/B 3.32 2.11 0.94
Price to free cash flow 11.34 20.32 8.93
EV/EBITDA 7.67 9.11 10.32
EV/Sales 2.18 4.08 5.72
Earnings yield 9.30% 7.69% 4.53%
Free cash flow yield 8.82% 4.92% 4.65%

Profitability

Metric FHI HLNE Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.11% 43.62% 33.03%
Net margin 20.33% 32.14% 13.53%
Free cash flow margin 18.97% 42.74% 12.44%
Return on equity 33.23% 20.53% 4.83%
Return on assets 17.55% 12.71% 1.57%
Return on invested capital 25.21% 14.48% 3.04%

Growth

Metric FHI HLNE Asset Management median
Revenue growth (TTM) 15.02% 24.01% 6.97%
EPS growth (last fiscal year) 58.82% 9.43% —
Revenue growth, 5-year CAGR 4.45% 17.31% 12.13%
Net income growth, 5-year CAGR 4.34% 20.51% 0.00%

Health

Metric FHI HLNE Asset Management median
Debt to equity 0.28 0.16 0.42
Current ratio 2.59 3.49 1.28
Net debt to EBITDA (0.44) (0.28) 1.06

Dividend

Metric FHI HLNE Asset Management median
Dividend yield 3.45% 1.55% 6.92%
Payout ratio 0.36 0.57 0.77

Size

Metric FHI HLNE Asset Management median
Market cap 4.28b 4.70b 721.34m

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