Federated Hermes (NYSE:FHI) vs. Binah Capital Group (NASDAQ:BCG) Head to Head Review

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$168.90 million	0.27	-$4.56 million	$0.03	91.33
Federated Hermes	$1.63 billion	2.49	$268.31 million	$4.79	10.94

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 breakdown of current ratings and recommmendations for Binah Capital Group and Federated Hermes, as provided by MarketBeat.com.

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

Federated Hermes has a consensus target price of $49.67, indicating a potential downside of 5.18%. Given Federated Hermes’ stronger consensus rating and higher probable upside, analysts clearly believe Federated Hermes is more favorable than Binah Capital Group.

Volatility & Risk

Binah Capital Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Federated Hermes has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Insider & Institutional Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 75.9% of Federated Hermes shares are owned by institutional investors. 1.9% of Binah Capital Group shares are owned by insiders. Comparatively, 3.8% of Federated Hermes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

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.

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.