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FMN vs MA

FMN
Federated Hermes Premier Municipal Income Fund
BEARISH
Price
$11.15
Market Cap
$87.2M
Sector
Financial Services
AI Confidence
85%
MA
Mastercard Incorporated
NEUTRAL
Price
$499.66
Market Cap
$445.92B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
FMN
92.92
MA
30.28
Forward P/E
FMN
--
MA
22.05
P/B Ratio
FMN
0.89
MA
57.74
P/S Ratio
FMN
11.31
MA
13.6
EV/EBITDA
FMN
--
MA
22.13

Profitability

Gross Margin
FMN
100.0%
MA
100.0%
Operating Margin
FMN
87.86%
MA
57.73%
Profit Margin
FMN
12.05%
MA
45.65%
ROE
FMN
0.94%
MA
209.91%
ROA
FMN
2.52%
MA
23.72%

Growth

Revenue Growth
FMN
-22.3%
MA
17.6%
Earnings Growth
FMN
-10.9%
MA
24.2%

Financial Health

Debt/Equity
FMN
0.69
MA
2.56
Current Ratio
FMN
3.38
MA
1.03
Quick Ratio
FMN
3.38
MA
0.68

Dividends

Dividend Yield
FMN
4.84%
MA
0.7%
Payout Ratio
FMN
425.0%
MA
18.4%

AI Verdict

FMN BEARISH

FMN exhibits a strong Piotroski F-Score of 7/9, indicating solid short-term operational health, but this is overshadowed by severe valuation and sustainability issues. The current price of $11.15 trades at a massive premium to both the Graham Number ($5.81) and the Intrinsic Value ($0.84), while a P/E of 92.92 is unjustifiable given negative revenue growth of -22.30%. Most critically, the dividend payout ratio of 425% is unsustainable, suggesting the fund is returning capital rather than earnings. Despite a healthy Price/Book ratio of 0.89, the combination of bearish technicals and declining fundamentals warrants a bearish outlook.

Strengths
Strong Piotroski F-Score (7/9) indicating operational stability
Trading below book value (Price/Book: 0.89)
Healthy liquidity with a Current Ratio of 3.38
Risks
Unsustainable dividend payout ratio of 425%
Severe valuation disconnect (Price vs. Graham/Intrinsic value)
Significant revenue contraction (-22.30% YoY)
MA NEUTRAL

MA shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (45.6% margin)
Strong revenue growth of 17.6%
Strong ROE of 209.9%
Risks
High valuation with P/E of 30.3
Premium vs Graham Number ($56.68)
High debt burden with D/E of 2.56

Compare Another Pair

FMN vs MA: Head-to-Head Comparison

This page compares Federated Hermes Premier Municipal Income Fund (FMN) and Mastercard Incorporated (MA) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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