FHI vs BLK

For growth investors, BlackRock, Inc.

(BLK) is the stronger pick with 18. 7% revenue growth year-over-year, versus 11. 0% for Federated Hermes, Inc. (FHI). 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 BlackRock, Inc. (BLK) a "Buy" — based on 33 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.

On trailing P/E, Federated Hermes, Inc.

(FHI) is the cheapest at 11. 5x versus BlackRock, Inc. at 29. 6x. On forward P/E, Federated Hermes, Inc. is actually cheaper at 11. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Federated Hermes, Inc. wins at 1. 19x versus BlackRock, Inc. 's 9. 19x — a reasonable growth-adjusted valuation.

Over the past 5 years, Federated Hermes, Inc.

(FHI) delivered a total return of +101. 8%, compared to +36. 8% for BlackRock, Inc. (BLK). Over 10 years, the gap is even starker: BLK returned +248. 2% versus FHI's +144. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Federated Hermes, Inc.

(FHI) is the lower-risk stock at 0. 70β versus BlackRock, Inc. 's 1. 25β — meaning BLK is approximately 79% more volatile than FHI relative to the S&P 500. On balance sheet safety, BlackRock, Inc. (BLK) carries a lower debt/equity ratio of 24% versus 36% for Federated Hermes, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), BlackRock, Inc.

(BLK) is pulling ahead at 18. 7% versus 11. 0% for Federated Hermes, Inc. (FHI). On earnings-per-share growth, the picture is similar: Federated Hermes, Inc. grew EPS 58. 8% year-over-year, compared to -15. 7% for BlackRock, 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.

BlackRock, Inc.

(BLK) is the more profitable company, earning 22. 9% net margin versus 22. 3% for Federated Hermes, Inc. — meaning it keeps 22. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FHI leads at 29. 5% versus 29. 1% for BLK. At the gross margin level — before operating expenses — FHI leads at 73. 6%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Federated Hermes, Inc. (FHI) is the more undervalued stock at a PEG of 1. 19x versus BlackRock, Inc. 's 9. 19x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Federated Hermes, Inc. (FHI) trades at 11. 6x forward P/E versus 19. 7x for BlackRock, Inc. — 8. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BLK: 24. 0% to $1301. 63.

All stocks in this comparison pay dividends.

Federated Hermes, Inc. (FHI) offers the highest yield at 2. 4%, versus 1. 9% for BlackRock, Inc. (BLK).

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%, BLK: +248. 2%), 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.

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; BLK is a mid-cap high-growth 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.