Fairfax India (TSE:FIH.U) and Fiera Capital (TSE:FSZ) are both small-cap financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Profitability
This table compares Fairfax India and Fiera Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Fairfax India | N/A | N/A | N/A |
| Fiera Capital | N/A | N/A | N/A |
Earnings and Valuation
This table compares Fairfax India and Fiera Capital's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Fairfax India | C$606.11 million | 3.08 | C$461.94 million | C$3.09 | 4.04 |
| Fiera Capital | C$700.24 million | 1.63 | C$-3,318,784.00 | C($0.03) | -343.75 |
Fairfax India has higher earnings, but lower revenue than Fiera Capital. Fiera Capital is trading at a lower price-to-earnings ratio than Fairfax India, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Fairfax India and Fiera Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Fairfax India | 0 | 0 | 1 | 0 | 3.00 |
| Fiera Capital | 0 | 5 | 1 | 0 | 2.17 |
Fairfax India presently has a consensus price target of C$14.00, indicating a potential upside of 12.18%. Fiera Capital has a consensus price target of C$11.89, indicating a potential upside of 8.12%. Given Fairfax India's stronger consensus rating and higher probable upside, equities research analysts clearly believe Fairfax India is more favorable than Fiera Capital.
Summary
Fairfax India beats Fiera Capital on 6 of the 7 factors compared between the two stocks.
