Affiliated Managers Group vs Federated Hermes
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KIRA’s take AI analyst
I put Affiliated Managers Group and Federated Hermes side by side, using each one’s latest annual report. Here is what stands out:
- Affiliated Managers Group is the larger business, with $2.1B of revenue in fiscal 2025 against $1.8B for Federated Hermes.
- Federated Hermes grew revenue faster (10.3%, against 1.6%).
- Affiliated Managers Group turned more of its sales into free cash flow (46.6% FCF margin, against 16.4%).
- Federated Hermes earned a higher return on the capital invested in it (40.9%, against 16.5%).
- Investors pay more for each dollar of Affiliated Managers Group’s earnings: a P/E of 13.7x against 10.5x for Federated Hermes.
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
Affiliated Managers Group
AMG
3/7
Net marginFCF marginShare count change
Federated Hermes
FHI
4/7
Revenue growth5-year growthReturn on capitalReturn on equity
Side by side
Best in the row
| Latest fiscal year | AMG FY25 | FHI FY25 |
|---|---|---|
| Size | ||
| Market cap | $10.5B | $4.0B |
| Revenue | $2.1B | $1.8B |
| Free cash flow | $967M | $295M |
| Net income | $717M | $403M |
| Growth | ||
| Revenue growth | 1.6% | 10.3% |
| 5-year growth | 0.5% | 4.5% |
| Share count change | −8.6% | −5.5% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | — | 28.5% |
| Net margin | 34.5% | 22.4% |
| FCF margin | 46.6% | 16.4% |
| Return on capital | 16.5% | 40.9% |
| Return on equity | 21.8% | 35.2% |
| Balance sheet | ||
| Net debt | $2.1B | −$234M |
| Net debt / EBITDA | — | −0.4x |
| Dividends and buybacks | $707M | $368M |
| Valuation & quality | ||
| P/E | 13.7x | 10.5x |
| 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.