Federated Hermes vs SEI Investments
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KIRA’s take AI analyst
I put Federated Hermes and SEI Investments side by side, using each one’s latest annual report. Here is what stands out:
- SEI Investments is the larger business, with $2.3B of revenue in fiscal 2025 against $1.8B for Federated Hermes.
- Federated Hermes grew revenue faster (10.3%, against 8.1%).
- Federated Hermes kept more of each dollar of sales as operating profit (28.5% operating margin, against 27.3%).
- SEI Investments turned more of its sales into free cash flow (25.5% FCF margin, against 16.4%).
- Investors pay more for each dollar of SEI Investments’s earnings: a P/E of 18.2x against 10.6x for Federated Hermes.
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
Federated Hermes
FHI
4/7
Revenue growthOperating marginReturn on equityShare count change
SEI Investments
SEIC
3/7
5-year growthNet marginFCF margin
Side by side
Best in the row
| Latest fiscal year | FHI FY25 | SEIC FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.1B | $12.7B |
| Revenue | $1.8B | $2.3B |
| Free cash flow | $295M | $585M |
| Net income | $403M | $715M |
| Growth | ||
| Revenue growth | 10.3% | 8.1% |
| 5-year growth | 4.5% | 6.4% |
| Share count change | −5.5% | −3.5% |
| Profitability | ||
| Gross margin | — | 35.2% |
| Operating margin | 28.5% | 27.3% |
| Net margin | 22.4% | 31.1% |
| FCF margin | 16.4% | 25.5% |
| Return on capital | 40.9% | — |
| Return on equity | 35.2% | 30.4% |
| Balance sheet | ||
| Net debt | −$234M | — |
| Net debt / EBITDA | −0.4x | — |
| Dividends and buybacks | $368M | $752M |
| Valuation & quality | ||
| P/E | 10.6x | 18.2x |
| Piotroski F-score | 7 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.