Federated Hermes, Inc. (FHI) vs Victory Capital Holdings, Inc. (VCTR)

Federated Hermes, Inc. and Victory Capital Holdings, Inc. are both Asset Management companies. Victory Capital Holdings, Inc. is the larger, with a market value of $7.0B against $4.7B — 1.5× the size. Federated Hermes, Inc. trades at the lower P/E: 11.6× against 20.5×. Victory Capital Holdings, Inc. grew revenue faster over the last twelve months: 36.9% against 13.2%. Victory Capital Holdings, Inc. has the higher net margin (21.8% vs 20.3%) and the lower return on invested capital (12.7% vs 27.1%). Both pay a dividend; Federated Hermes, Inc. yields more (2.25% vs 1.76%). Across the 20 metrics below, Federated Hermes, Inc. leads on 11 and Victory Capital Holdings, Inc. on 9.

Valuation

Metric FHI VCTR Asset Management median
P/E 11.56 20.54 13.38
P/S 2.31 4.37 2.99
P/B 3.52 2.87 0.91
Price to free cash flow 11.79 11.21 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.65% 4.87% 4.67%
Free cash flow yield 8.48% 8.92% 4.85%

Profitability

Metric FHI VCTR Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.80% 40.39% 27.27%
Net margin 20.32% 21.82% 11.89%
Free cash flow margin 19.55% 38.97% 5.96%
Return on equity 32.33% 14.42% 4.57%
Return on assets 17.23% 8.23% 1.40%
Return on invested capital 27.06% 12.65% 2.12%

Growth

Metric FHI VCTR Asset Management median
Revenue growth (TTM) 13.16% 36.90% 7.26%
EPS growth (last fiscal year) 58.82% (6.85%) (5.64%)
Revenue growth, 5-year CAGR 4.45% 10.99% 11.84%
Net income growth, 5-year CAGR 4.34% 4.92% 0.00%

Health

Metric FHI VCTR Asset Management median
Debt to equity 0.27 0.40 0.40
Current ratio 2.48 1.29 1.23
Net debt to EBITDA (0.44) 1.46 1.06

Dividend

Metric FHI VCTR Asset Management median
Dividend yield 2.25% 1.76% 6.43%
Payout ratio 0.26 0.36 0.91

Size

Metric FHI VCTR Asset Management median
Market cap 4.73b 6.96b 692.54m

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