Reviewing Federated Hermes (NYSE:FHI) & Binah Capital Group (NASDAQ:BCG)

Federated Hermes (NYSE:FHI) and Binah Capital Group (NASDAQ:BCG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Federated Hermes has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Valuation & Earnings

This table compares Federated Hermes and Binah Capital Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federated Hermes	$1.74 billion	2.36	$268.31 million	$4.79	11.07
Binah Capital Group	$168.90 million	0.26	-$4.56 million	$0.03	88.67

Federated Hermes has higher revenue and earnings than Binah Capital Group. Federated Hermes is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Federated Hermes and Binah Capital Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federated Hermes	0	6	3	0	2.33
Binah Capital Group	1	0	0	0	1.00

Federated Hermes currently has a consensus price target of $49.67, indicating a potential downside of 6.30%. Given Federated Hermes’ stronger consensus rating and higher possible upside, equities analysts clearly believe Federated Hermes is more favorable than Binah Capital Group.

Institutional and Insider Ownership

75.9% of Federated Hermes shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 3.8% of Federated Hermes shares are held by insiders. Comparatively, 1.9% of Binah Capital Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Federated Hermes and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federated Hermes	21.86%	33.03%	17.55%
Binah Capital Group	0.58%	509.27%	1.55%

Summary

Federated Hermes beats Binah Capital Group on 12 of the 14 factors compared between the two stocks.

About Federated Hermes

Federated Hermes, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.