Great Elm Capital Group (NASDAQ:GECC – Get Free Report) and Fairfax India (OTCMKTS:FFXDF – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
Institutional & Insider Ownership
38.8% of Great Elm Capital Group shares are held by institutional investors. Comparatively, 0.2% of Fairfax India shares are held by institutional investors. 3.9% of Great Elm Capital Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Great Elm Capital Group and Fairfax India, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Great Elm Capital Group | 1 | 3 | 0 | 0 | 1.75 |
| Fairfax India | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
Great Elm Capital Group has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Fairfax India has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Great Elm Capital Group and Fairfax India”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Great Elm Capital Group | $49.99 million | 1.69 | -$31.79 million | ($2.39) | -2.54 |
| Fairfax India | $608.85 million | 3.90 | $410.53 million | $1.85 | 9.52 |
Fairfax India has higher revenue and earnings than Great Elm Capital Group. Great Elm Capital Group is trading at a lower price-to-earnings ratio than Fairfax India, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Great Elm Capital Group and Fairfax India’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Great Elm Capital Group | -70.13% | 14.16% | 4.88% |
| Fairfax India | N/A | 8.20% | 6.44% |
Summary
Fairfax India beats Great Elm Capital Group on 8 of the 13 factors compared between the two stocks.
About Great Elm Capital Group
Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.
About Fairfax India
Fairfax India Holdings Corporation operates as an investment holding company in India. It invests in public and private equity securities and debt instruments in India and Indian businesses, or other businesses with customers, suppliers, or business primarily conducted and dependent in India. The company was incorporated in 2014 and is headquartered in Toronto, Canada. Fairfax India Holdings Corporation is a subsidiary of Fairfax Financial Holdings Limited.
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