Head-To-Head Analysis: Federated Hermes (NYSE:FHI) vs. Legal & General Group (OTCMKTS:LGGNY)

Federated Hermes (NYSE:FHI) and Legal & General Group (OTCMKTS:LGGNY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

75.9% of Federated Hermes shares are owned by institutional investors. Comparatively, 0.0% of Legal & General Group shares are owned by institutional investors. 3.7% of Federated Hermes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Federated Hermes has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Legal & General Group has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Earnings and Valuation

This table compares Federated Hermes and Legal & General Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federated Hermes	$1.63 billion	1.95	$268.31 million	$3.19	12.24
Legal & General Group	$11.97 billion	1.58	$568.46 million	N/A	N/A

Legal & General Group has higher revenue and earnings than Federated Hermes.

Analyst Ratings

This is a breakdown of current ratings for Federated Hermes and Legal & General Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federated Hermes	1	3	2	0	2.17
Legal & General Group	0	0	0	3	4.00

Federated Hermes presently has a consensus target price of $42.17, indicating a potential upside of 8.00%. Given Federated Hermes’ higher probable upside, equities research analysts clearly believe Federated Hermes is more favorable than Legal & General Group.

Profitability

This table compares Federated Hermes and Legal & General Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federated Hermes	16.44%	30.31%	16.21%
Legal & General Group	N/A	N/A	N/A

Dividends

Federated Hermes pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Legal & General Group pays an annual dividend of $0.75 per share and has a dividend yield of 4.7%. Federated Hermes pays out 38.9% of its earnings in the form of a dividend.

Summary

Federated Hermes beats Legal & General Group on 8 of the 15 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 Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The Retail segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.