FHI
Federated Hermes, Inc.
Asset Management
Market Cap$4.49B
5Y Perf.+149.2%
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BEN
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Stock Comparison
FHI vs BEN
Revenue, margins, valuation, and 5-year total return — side by side.
BEN
Franklin Resources, Inc.
Asset Management
Market Cap$17.17B
5Y Perf.+57.6%
FHI vs BEN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot |  FHI |  BEN |
|---|---|---|
| Industry | Asset Management | Asset Management |
| Market Cap | $4.49B | $17.17B |
| Revenue (TTM) | $1.86B | $9.03B |
| Net Income (TTM) | $399M | $812M |
| Gross Margin | 51.5% | 73.8% |
| Operating Margin | 27.4% | 9.3% |
| Forward P/E | 11.6x | 12.1x |
| Total Debt | $457M | $13.30B |
| Cash & Equiv. | $584M | $3.57B |
FHI vs BEN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
FHI
BEN
| Stock | Jun 20 | Jun 26 | Return |
|---|---|---|---|
| Federated Hermes, I… (FHI) | 100 | 249.2 | +149.2% |
| Franklin Resources,… (BEN) | 100 | 157.6 | +57.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: FHI vs BEN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: FHI leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Franklin Resources, Inc. is the stronger pick specifically for recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
🥇FHI emerged as the overall leader. Track its performance:
FHI
Federated Hermes, Inc.
The Banking Pick
FHI carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 3 yrs, beta 0.70, yield 2.4%
- Rev growth 11.0%, EPS growth 58.8%
- 144.4% 10Y total return vs BEN's 39.9%
Best for: income & stability and growth exposure
BEN
Franklin Resources, Inc.
The Banking Pick
BEN is the clearest fit if your priority is momentum.
- +52.1% vs FHI's +43.1%
Best for: momentum
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth |  FHI | 11.0% NII/revenue growth vs BEN's 3.5% |
| Value | FHI | Lower P/E (11.6x vs 12.1x) |
| Quality / Margins | FHI | Efficiency ratio 0.4% vs BEN's 0.7% (lower = leaner) |
| Stability / Safety | FHI | Beta 0.70 vs BEN's 1.26, lower leverage |
| Dividends | FHI | 2.4% yield, 3-year raise streak, vs BEN's 4.0% |
| Momentum (1Y) |  BEN | +52.1% vs FHI's +43.1% |
| Efficiency (ROA) | FHI | Efficiency ratio 0.4% vs BEN's 0.7% |
FHI vs BEN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
FHI vs BEN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLFHILAGGINGBEN
BENFranklin Resources, I…
0leads
FHIFederated Hermes, Inc.
5leads
6 Total Categories
CATEGORYLEADERvs BENMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
FHI3/5
Valuation MetricsMultiples, price ratios, and targets
FHI4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
FHI9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
FHI4/6
Risk & VolatilityBeta, volatility, and downside exposure
FHI2/2
Analyst OutlookRatings, price targets, and dividends
Tied
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Income & Cash Flow (Last 12 Months)
FHI leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
BEN is the larger business by revenue, generating $9.0B annually — 4.9x FHI's $1.9B. FHI is the more profitable business, keeping 21.4% of every revenue dollar as net income compared to BEN's 9.0%.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| RevenueTrailing 12 months | $1.9B | $9.0B |
| EBITDAEarnings before interest/tax | $527M | $1.2B |
| Net IncomeAfter-tax profit | $399M | $812M |
| Free Cash FlowCash after capex | $307M | $938M |
| Gross MarginGross profit ÷ Revenue | +51.5% | +73.8% |
| Operating MarginEBIT ÷ Revenue | +27.4% | +9.3% |
| Net MarginNet income ÷ Revenue | +21.4% | +9.0% |
| FCF MarginFCF ÷ Revenue | +16.5% | +10.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +1.6% | +100.0% |
FHI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
FHI leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 11.5x trailing earnings, FHI trades at a 68% valuation discount to BEN's 36.3x P/E. On an enterprise value basis, FHI's 7.8x EV/EBITDA is more attractive than BEN's 23.7x.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| Market CapShares × price | $4.5B | $17.2B |
| Enterprise ValueMkt cap + debt − cash | $4.4B | $26.9B |
| Trailing P/EPrice ÷ TTM EPS | 11.51x | 36.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.56x | 12.06x |
| PEG RatioP/E ÷ EPS growth rate | 1.19x | — |
| EV / EBITDAEnterprise value multiple | 7.82x | 23.68x |
| Price / SalesMarket cap ÷ Revenue | 2.48x | 1.96x |
| Price / BookPrice ÷ Book value/share | 3.51x | 1.20x |
| Price / FCFMarket cap ÷ FCF | 15.23x | 18.84x |
FHI leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
FHI leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
FHI delivers a 29.5% return on equity — every $100 of shareholder capital generates $30 in annual profit, vs $6 for BEN. FHI carries lower financial leverage with a 0.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to BEN's 0.94x. On the Piotroski fundamental quality scale (0–9), FHI scores 8/9 vs BEN's 6/9, reflecting strong financial health.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| ROE (TTM)Return on equity | +29.5% | +5.6% |
| ROA (TTM)Return on assets | +18.2% | +2.5% |
| ROICReturn on invested capital | +24.1% | +1.6% |
| ROCEReturn on capital employed | +26.3% | +2.0% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.36x | 0.94x |
| Net DebtTotal debt minus cash | -$127M | $9.7B |
| Cash & Equiv.Liquid assets | $584M | $3.6B |
| Total DebtShort + long-term debt | $457M | $13.3B |
| Interest CoverageEBIT ÷ Interest expense | 44.07x | 15.19x |
FHI leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
FHI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in FHI five years ago would be worth $20,177 today (with dividends reinvested), compared to $12,555 for BEN. Over the past 12 months, BEN leads with a +52.1% total return vs FHI's +43.1%. The 3-year compound annual growth rate (CAGR) favors FHI at 19.2% vs BEN's 12.1% — a key indicator of consistent wealth creation.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| YTD ReturnYear-to-date | +14.2% | +40.3% |
| 1-Year ReturnPast 12 months | +43.1% | +52.1% |
| 3-Year ReturnCumulative with dividends | +69.2% | +40.7% |
| 5-Year ReturnCumulative with dividends | +101.8% | +25.5% |
| 10-Year ReturnCumulative with dividends | +144.4% | +39.9% |
| CAGR (3Y)Annualised 3-year return | +19.2% | +12.1% |
FHI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
FHI leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
FHI is the less volatile stock with a 0.70 beta — it tends to amplify market swings less than BEN's 1.26 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.70x | 1.26x |
| 52-Week HighHighest price in past year | $59.83 | $34.17 |
| 52-Week LowLowest price in past year | $41.71 | $21.11 |
| % of 52W HighCurrent price vs 52-week peak | +98.7% | +96.7% |
| RSI (14)Momentum oscillator 0–100 | 67.2 | 66.7 |
| Avg Volume (50D)Average daily shares traded | 734K | 4.2M |
FHI leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — FHI and BEN each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates FHI as "Hold" and BEN as "Hold". Consensus price targets imply -2.7% upside for FHI (target: $58) vs -3.2% for BEN (target: $32). For income investors, BEN offers the higher dividend yield at 4.01% vs FHI's 2.36%.
| Metric | FHIFederated Hermes,… | BENFranklin Resource… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $57.50 | $32.00 |
| # AnalystsCovering analysts | 21 | 27 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +4.0% |
| Dividend StreakConsecutive years of raises | 3 | 2 |
| Dividend / ShareAnnual DPS | $1.40 | $1.33 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.9% | +1.4% |
Evenly matched — FHI and BEN each lead in 1 of 2 comparable metrics.
Key Takeaway
FHI leads in 5 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 1 category is tied.
Best OverallFederated Hermes, Inc. (FHI)Leads 5 of 6 categories
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FHI vs BEN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is FHI or BEN a better buy right now?
For growth investors, Federated Hermes, Inc.
(FHI) is the stronger pick with 11. 0% revenue growth year-over-year, versus 3. 5% for Franklin Resources, Inc. (BEN). Federated Hermes, Inc. (FHI) offers the better valuation at 11. 5x trailing P/E (11. 6x forward), making it the more compelling value choice. Analysts rate Federated Hermes, Inc. (FHI) a "Hold" — based on 21 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FHI or BEN?
On trailing P/E, Federated Hermes, Inc.
(FHI) is the cheapest at 11. 5x versus Franklin Resources, Inc. at 36. 3x. On forward P/E, Federated Hermes, Inc. is actually cheaper at 11. 6x.
03Which is the better long-term investment — FHI or BEN?
Over the past 5 years, Federated Hermes, Inc.
(FHI) delivered a total return of +101. 8%, compared to +25. 5% for Franklin Resources, Inc. (BEN). Over 10 years, the gap is even starker: FHI returned +144. 4% versus BEN's +39. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FHI or BEN?
By beta (market sensitivity over 5 years), Federated Hermes, Inc.
(FHI) is the lower-risk stock at 0. 70β versus Franklin Resources, Inc. 's 1. 26β — meaning BEN is approximately 81% more volatile than FHI relative to the S&P 500. On balance sheet safety, Federated Hermes, Inc. (FHI) carries a lower debt/equity ratio of 36% versus 94% for Franklin Resources, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — FHI or BEN?
By revenue growth (latest reported year), Federated Hermes, Inc.
(FHI) is pulling ahead at 11. 0% versus 3. 5% for Franklin Resources, Inc. (BEN). On earnings-per-share growth, the picture is similar: Federated Hermes, Inc. grew EPS 58. 8% year-over-year, compared to 7. 1% for Franklin Resources, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — FHI or BEN?
Federated Hermes, Inc.
(FHI) is the more profitable company, earning 22. 3% net margin versus 6. 0% for Franklin Resources, Inc. — meaning it keeps 22. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FHI leads at 29. 5% versus 6. 9% for BEN. At the gross margin level — before operating expenses — BEN leads at 80. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is FHI or BEN more undervalued right now?
On forward earnings alone, Federated Hermes, Inc.
(FHI) trades at 11. 6x forward P/E versus 12. 1x for Franklin Resources, Inc. — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FHI: -2. 7% to $57. 50.
08Which pays a better dividend — FHI or BEN?
All stocks in this comparison pay dividends.
Franklin Resources, Inc. (BEN) offers the highest yield at 4. 0%, versus 2. 4% for Federated Hermes, Inc. (FHI).
09Is FHI or BEN better for a retirement portfolio?
For long-horizon retirement investors, Federated Hermes, Inc.
(FHI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 70), 2. 4% yield, +144. 4% 10Y return). Both have compounded well over 10 years (FHI: +144. 4%, BEN: +39. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between FHI and BEN?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: FHI is a small-cap deep-value stock; BEN is a mid-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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