Federated Hermes vs Golub Capital BDC

Federated Hermes and Golub Capital BDC are compared on this page, examining business models, financial performance, and market context in clear, accessible language. The aim is to present neutral information to help readers understand how each organisation operates and performs within their respective sectors. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FHI

Metric

GBDC

$4.14B

Market Cap

$3.61B

-3.99%

Potential Profit

8.70%

Hold

Analyst Rating

Buy

Investment Analysis

Federated Hermes

FHI

Pros

Record assets under management reached $871.2 billion in Q3 2025, reflecting strong investor demand and growth momentum.
Earnings per share rose to $1.34 in Q3 2025, up from $1.06 in the same period last year, indicating improved profitability.
The company maintains a healthy balance sheet with a debt-to-equity ratio of 27.8%, supporting financial stability.

Considerations

Asset management revenues are sensitive to market volatility and interest rate changes, which could impact future earnings.
Recent insider selling activity may raise concerns about management's confidence in near-term prospects.
Valuation metrics suggest the stock is trading at a premium compared to sector averages, potentially limiting upside.

Golub Capital BDC

GBDC

Pros

Golub Capital BDC maintains a resilient investment strategy focused on first lien senior secured loans, which historically have low credit losses.
The company benefits from strong underwriting standards and a diversified portfolio across multiple industries and private equity sponsors.
Recent return on equity improved to 9.35%, above the ten-year historical average, reflecting improved capital efficiency.

Considerations

As an externally managed business development company, operational costs and fee structures may limit net returns to shareholders.
The portfolio is exposed to risks associated with middle-market lending, including economic downturns and credit quality deterioration.
Valuation metrics such as price-to-book and price-to-earnings are not available or meaningful, making it difficult to assess relative value.

About The Companies

Federated Hermes (FHI)

Federated Hermes, Inc. is an investment management company that provides a wide range of financial services. Its core business involves sponsoring, marketing, and offering investment-related services for various products, including its sponsored Federated Hermes Funds and Separate Accounts for institutional clients. The company serves a diverse client base, ranging from large institutions and corporations to retirement plans and retail investors, who are typically accessed through intermediaries like banks and broker-dealers. Beyond traditional investment management, the firm also provides stewardship and real estate development services to an international clientele. As such, Federated Hermes operates as a key player in the global financial services ecosystem, managing assets and providing advisory services for a broad spectrum of investors. The value of investments can go down as well as up, and returns are not guaranteed.

Golub Capital BDC (GBDC)

Golub Capital BDC Inc (GBDC) is a US‑listed business development company (BDC) that provides credit to middle‑market companies, primarily through senior secured and unitranche loans. Managed by Golub Capital, the company focuses on floating‑rate private credit originated to private equity‑backed firms, aiming to generate current income for shareholders. With a market capitalisation of about $3.75bn, GBDC offers exposure to private credit outside the traditional banking system, including potential yield advantages compared with plain‑vanilla bonds. Investors should be aware of interest‑rate sensitivity (many loans are floating‑rate), credit and liquidity risk, and share‑price volatility that can come from widening credit spreads or capital‑markets moves. As a BDC, it distributes a large portion of income as dividends, but payouts depend on net investment income and portfolio performance. This is educational information only, not personal advice — consider your risk tolerance and consult a financial adviser before investing.

Which Baskets Do They Appear In?

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Which Baskets Do They Appear In?

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6% Interest on Cash

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Federated Hermes vs Golub Capital BDC

Comparison Snapshot

Investment Analysis

Federated Hermes

Pros

Considerations

Golub Capital BDC

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy FHI or GBDC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

Federated Hermes vs Golub Capital BDC

Comparison Snapshot

Investment Analysis

Federated Hermes

Pros

Considerations

Golub Capital BDC

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy FHI or GBDC in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Federated Hermes vs TFS Financial

ServisFirst Bancshares vs Golub Capital BDC

Assured Guaranty vs Golub Capital BDC

Frequently asked questions

What are the basic differences between Federated Hermes (Federated Hermes, Inc.) and Golub Capital BDC Inc in this comparison?

Why is it useful to compare a traditional asset manager with a BDC?

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What does ROE tell us about Golub Capital BDC’s performance here?

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Why might valuation metrics be limited for Golub Capital BDC in this comparison?

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What is the educational purpose of this comparison page?

Educational disclaimer for readers starting here

Comparison Snapshot

About The Companies