Federated Hermes, Inc. (FHI) vs Blue Owl Capital Corporation (OBDC)

Federated Hermes, Inc. and Blue Owl Capital Corporation are both Asset Management companies. Blue Owl Capital Corporation is the larger, with a market value of $5.1B against $4.2B — 1.2× the size. Federated Hermes, Inc. trades at the lower P/E: 10.4× against 18.1×. Federated Hermes, Inc. grew revenue faster over the last twelve months: 15.0% against −2.97%. Federated Hermes, Inc. has the higher net margin (20.3% vs 17.0%) and the higher return on invested capital (25.2% vs 3.09%). Both pay a dividend; Blue Owl Capital Corporation yields more (13.7% vs 2.58%). Across the 20 metrics below, Federated Hermes, Inc. leads on 12 and Blue Owl Capital Corporation on 8.

Valuation

Metric FHI OBDC Asset Management median
P/E 10.38 18.05 13.99
P/S 2.08 2.95 2.76
P/B 3.21 0.71 0.85
Price to free cash flow 10.95 2.27 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.63% 5.54% 4.72%
Free cash flow yield 9.13% 44.06% 4.44%

Profitability

Metric FHI OBDC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.11% 75.33% 33.42%
Net margin 20.33% 16.99% 13.37%
Free cash flow margin 18.97% 129.88% 12.36%
Return on equity 33.23% 3.92% 4.79%
Return on assets 17.55% 1.76% 1.55%
Return on invested capital 25.21% 3.09% 2.97%

Growth

Metric FHI OBDC Asset Management median
Revenue growth (TTM) 15.02% (2.97%) 7.42%
EPS growth (last fiscal year) 58.82% (18.95%) (6.67%)
Revenue growth, 5-year CAGR 4.45% 18.17% 12.51%
Net income growth, 5-year CAGR 4.34% 10.10% 0.00%

Health

Metric FHI OBDC Asset Management median
Debt to equity 0.28 1.12 0.44
Current ratio 2.59 0.65 1.30
Net debt to EBITDA (0.44) 6.51 1.02

Dividend

Metric FHI OBDC Asset Management median
Dividend yield 2.58% 13.65% 6.60%
Payout ratio 0.27 2.46 0.94

Size

Metric FHI OBDC Asset Management median
Market cap 4.22b 5.10b 694.86m

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