Barings Participation Investors (NYSE:MPV) vs. Federated Hermes (NYSE:FHI) Head-To-Head Comparison

Federated Hermes (NYSE:FHI) and Barings Participation Investors (NYSE:MPV) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Federated Hermes and Barings Participation Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federated Hermes	21.67%	32.30%	17.05%
Barings Participation Investors	N/A	N/A	N/A

Dividends

Federated Hermes pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. Barings Participation Investors pays an annual dividend of $1.48 per share and has a dividend yield of 7.4%. Federated Hermes pays out 28.4% of its earnings in the form of a dividend. Federated Hermes has raised its dividend for 4 consecutive years.

Valuation and Earnings

This table compares Federated Hermes and Barings Participation Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federated Hermes	$1.74 billion	2.19	$268.31 million	$4.79	10.26
Barings Participation Investors	N/A	N/A	N/A	N/A	N/A

Federated Hermes has higher revenue and earnings than Barings Participation Investors.

Volatility and Risk

Federated Hermes has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Barings Participation Investors has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

75.9% of Federated Hermes shares are held by institutional investors. 3.8% of Federated Hermes shares are held by company insiders. Comparatively, 1.3% of Barings Participation Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Federated Hermes and Barings Participation Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federated Hermes	0	5	3	1	2.56
Barings Participation Investors	0	0	0	0	0.00

Federated Hermes presently has a consensus price target of $49.67, suggesting a potential upside of 1.09%. Given Federated Hermes’ stronger consensus rating and higher possible upside, research analysts plainly believe Federated Hermes is more favorable than Barings Participation Investors.

Summary

Federated Hermes beats Barings Participation Investors on 12 of the 14 factors compared between the two stocks.

About Federated Hermes

Federated Hermes, Inc. is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.

About Barings Participation Investors

Barings Participation Investors is a closed ended fixed income mutual fund launched and managed by Barings LLC. The fund invests in the fixed income markets of the United States. It primarily invests in below-investment grade, long-term corporate debt obligations which are directly purchased from its issuers. The fund also seeks to invest in warrants, conversion rights, or other equity related instruments. It benchmarks the performance of its portfolio against Standard and Poor's Industrials Composite, Russell 2000 Index, Lehman Brothers U.S. High Yield Index, and Lehman Brothers Intermediate U.S. Credit Index. The fund was formerly known as Babson Capital Participation Investors. Barings Participation Investors was formed on April 7, 1988 and is domiciled in the United States.