Federated Hermes, Inc. (FHI) vs WisdomTree, Inc. (WT)

Federated Hermes, Inc. and WisdomTree, Inc. are both Asset Management companies. Federated Hermes, Inc. is the larger, with a market value of $4.3B against $3.6B — 1.2× the size. Federated Hermes, Inc. trades at the lower P/E: 10.7× against 43.4×. WisdomTree, Inc. grew revenue faster over the last twelve months: 37.1% against 15.0%. Federated Hermes, Inc. has the higher net margin (20.3% vs 13.2%) and the higher return on invested capital (25.2% vs 12.3%). Both pay a dividend; Federated Hermes, Inc. yields more (3.45% vs 1.73%). Across the 22 metrics below, Federated Hermes, Inc. leads on 16 and WisdomTree, Inc. on 6.

Valuation

Metric FHI WT Asset Management median
P/E 10.75 43.45 14.62
P/S 2.15 5.95 2.97
P/B 3.32 8.66 0.94
Price to free cash flow 11.34 18.85 8.93
EV/EBITDA 7.67 17.55 10.32
EV/Sales 2.18 7.23 5.72
Earnings yield 9.30% 2.30% 4.53%
Free cash flow yield 8.82% 5.31% 4.65%

Profitability

Metric FHI WT Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 27.11% 38.80% 33.03%
Net margin 20.33% 13.15% 13.53%
Free cash flow margin 18.97% 31.55% 12.44%
Return on equity 33.23% 18.56% 4.83%
Return on assets 17.55% 5.91% 1.57%
Return on invested capital 25.21% 12.33% 3.04%

Growth

Metric FHI WT Asset Management median
Revenue growth (TTM) 15.02% 37.14% 6.97%
EPS growth (last fiscal year) 58.82% 127.27% —
Revenue growth, 5-year CAGR 4.45% 14.59% 12.13%
Net income growth, 5-year CAGR 4.34% 0.00% 0.00%

Health

Metric FHI WT Asset Management median
Debt to equity 0.28 2.57 0.42
Current ratio 2.59 3.00 1.28
Net debt to EBITDA (0.44) 3.51 1.06

Dividend

Metric FHI WT Asset Management median
Dividend yield 3.45% 1.73% 6.92%
Payout ratio 0.36 0.21 0.77

Size

Metric FHI WT Asset Management median
Market cap 4.28b 3.63b 721.34m

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