Federated Hermes, Inc. (FHI) vs Blue Owl Technology Finance Corp. (OTF)

Federated Hermes, Inc. and Blue Owl Technology Finance Corp. are both Asset Management companies. Federated Hermes, Inc. and Blue Owl Technology Finance Corp. are of similar size ($4.7B and $4.3B). Federated Hermes, Inc. trades at the lower P/E: 10.7× against 12.9×. Blue Owl Technology Finance Corp. grew revenue faster over the last twelve months: 55.6% against 15.0%. Blue Owl Technology Finance Corp. has the higher net margin (28.7% vs 20.3%) and the lower return on invested capital (2.94% vs 25.2%). Across the 20 metrics below, Federated Hermes, Inc. leads on 14 and Blue Owl Technology Finance Corp. on 6.

Valuation

Metric FHI OTF Asset Management median
P/E 10.75 12.89 14.62
P/S 2.15 3.64 2.97
P/B 3.32 0.63 0.94
Price to free cash flow 11.34 n/m 8.93
EV/EBITDA 7.67 11.08 10.32
EV/Sales 2.18 8.95 5.72
Earnings yield 9.30% 7.76% 4.53%
Free cash flow yield 8.82% (32.87%) 4.65%

Profitability

Metric FHI OTF Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.11% 82.41% 33.03%
Net margin 20.33% 28.70% 13.53%
Free cash flow margin 18.97% (119.50%) 12.44%
Return on equity 33.23% 4.83% 4.83%
Return on assets 17.55% 2.67% 1.57%
Return on invested capital 25.21% 2.94% 3.04%

Growth

Metric FHI OTF Asset Management median
Revenue growth (TTM) 15.02% 55.63% 6.97%
EPS growth (last fiscal year) 58.82% 15.79% —
Revenue growth, 5-year CAGR 4.45% 45.91% 12.13%
Net income growth, 5-year CAGR 4.34% 42.61% 0.00%

Health

Metric FHI OTF Asset Management median
Debt to equity 0.28 0.95 0.42
Current ratio 2.59 0.05 1.28
Net debt to EBITDA (0.44) 6.31 1.06

Dividend

Metric FHI OTF Asset Management median
Dividend yield 3.45% — 6.92%
Payout ratio 0.36 — 0.77

Size

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

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