Federated Hermes, Inc. (FHI) vs Main Street Capital Corporation (MAIN)

Federated Hermes, Inc. and Main Street Capital Corporation are both Asset Management companies. Main Street Capital Corporation is the larger, with a market value of $5.2B against $4.3B — 1.2× the size. Federated Hermes, Inc. trades at the lower P/E: 10.7× against 11.1×. Federated Hermes, Inc. grew revenue faster over the last twelve months: 15.0% against 3.00%. Main Street Capital Corporation has the higher net margin (78.5% vs 20.3%) and the lower return on invested capital (6.18% vs 25.2%). Both pay a dividend; Main Street Capital Corporation yields more (7.69% vs 3.45%). Across the 21 metrics below, Federated Hermes, Inc. leads on 14 and Main Street Capital Corporation on 7.

Valuation

Metric FHI MAIN Asset Management median
P/E 10.75 11.11 14.62
P/S 2.15 8.94 2.97
P/B 3.32 1.62 0.94
Price to free cash flow 11.34 n/m 8.93
EV/EBITDA 7.67 11.18 10.32
EV/Sales 2.18 9.85 5.72
Earnings yield 9.30% 9.00% 4.53%
Free cash flow yield 8.82% (2.92%) 4.65%

Profitability

Metric FHI MAIN Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.11% 86.99% 33.03%
Net margin 20.33% 78.49% 13.53%
Free cash flow margin 18.97% (26.05%) 12.44%
Return on equity 33.23% 14.92% 4.83%
Return on assets 17.55% 8.04% 1.57%
Return on invested capital 25.21% 6.18% 3.04%

Growth

Metric FHI MAIN Asset Management median
Revenue growth (TTM) 15.02% 3.00% 6.97%
EPS growth (last fiscal year) 58.82% (5.64%) —
Revenue growth, 5-year CAGR 4.45% 20.53% 12.13%
Net income growth, 5-year CAGR 4.34% 75.80% 0.00%

Health

Metric FHI MAIN Asset Management median
Debt to equity 0.28 0.19 0.42
Current ratio 2.59 0.05 1.28
Net debt to EBITDA (0.44) 1.64 1.06

Dividend

Metric FHI MAIN Asset Management median
Dividend yield 3.45% 7.69% 6.92%
Payout ratio 0.36 0.69 0.77

Size

Metric FHI MAIN Asset Management median
Market cap 4.28b 5.15b 721.34m

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