Federated Hermes vs Blue Owl Capital
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KIRA’s take AI analyst
I put Federated Hermes and Blue Owl Capital side by side, using each one’s latest annual report. Here is what stands out:
- Blue Owl Capital is the larger business, with $2.9B of revenue in fiscal 2025 against $1.8B for Federated Hermes, about 1.6 times as much.
- Blue Owl Capital grew revenue faster (25.0%, against 10.3%).
- Blue Owl Capital turned more of its sales into free cash flow (41.8% FCF margin, against 16.4%).
- Federated Hermes earned a higher return on the capital invested in it (40.9%, against 5.2%).
- Investors pay more for each dollar of Blue Owl Capital’s earnings: a P/E of 77.8x against 10.6x for Federated Hermes.
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Federated Hermes
FHI
5/8
Net marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Blue Owl Capital
OWL
3/8
Revenue growth5-year growthFCF margin
Side by side
Best in the row
| Latest fiscal year | FHI FY25 | OWL FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.1B | $6.4B |
| Revenue | $1.8B | $2.9B |
| Free cash flow | $295M | $1.2B |
| Net income | $403M | $78.8M |
| Growth | ||
| Revenue growth | 10.3% | 25.0% |
| 5-year growth | 4.5% | 63.0% |
| Share count change | −5.5% | 18.5% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 28.5% | — |
| Net margin | 22.4% | 2.8% |
| FCF margin | 16.4% | 41.8% |
| Return on capital | 40.9% | 5.2% |
| Return on equity | 35.2% | 3.6% |
| Balance sheet | ||
| Net debt | −$234M | $3.1B |
| Net debt / EBITDA | −0.4x | 3.5x |
| Dividends and buybacks | $368M | $600M |
| Valuation & quality | ||
| P/E | 10.6x | 77.8x |
| 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.