Federated Hermes (NYSE:FHI – Get Free Report) and Siebert Financial (NASDAQ:SIEB – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Risk and Volatility
Federated Hermes has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Siebert Financial has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Earnings & Valuation
This table compares Federated Hermes and Siebert Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federated Hermes | $1.93 billion | 2.17 | $403.30 million | $5.38 | 10.45 |
| Siebert Financial | $94.20 million | 1.00 | $5.12 million | ($0.03) | -76.70 |
Federated Hermes has higher revenue and earnings than Siebert Financial. Siebert Financial is trading at a lower price-to-earnings ratio than Federated Hermes, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Federated Hermes and Siebert Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federated Hermes | 21.30% | 34.03% | 18.54% |
| Siebert Financial | -1.07% | -1.25% | -0.15% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Federated Hermes and Siebert Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federated Hermes | 1 | 4 | 1 | 2 | 2.50 |
| Siebert Financial | 1 | 0 | 0 | 0 | 1.00 |
Federated Hermes presently has a consensus price target of $57.40, suggesting a potential upside of 2.14%. Given Federated Hermes’ stronger consensus rating and higher possible upside, research analysts clearly believe Federated Hermes is more favorable than Siebert Financial.
Insider and Institutional Ownership
75.9% of Federated Hermes shares are held by institutional investors. Comparatively, 1.5% of Siebert Financial shares are held by institutional investors. 4.2% of Federated Hermes shares are held by company insiders. Comparatively, 46.0% of Siebert Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Federated Hermes beats Siebert Financial on 13 of the 15 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 Siebert Financial
Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.
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