Freedom (NASDAQ:FRHC – Get Free Report) and Heritage Global (NASDAQ:HGBL – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
1.3% of Freedom shares are held by institutional investors. Comparatively, 33.5% of Heritage Global shares are held by institutional investors. 69.8% of Freedom shares are held by insiders. Comparatively, 15.6% of Heritage Global shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Freedom and Heritage Global, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freedom | 0 | 2 | 1 | 0 | 2.33 |
| Heritage Global | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares Freedom and Heritage Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freedom | 6.47% | 10.96% | 1.24% |
| Heritage Global | -29.63% | 6.12% | 4.69% |
Risk and Volatility
Freedom has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Heritage Global has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Earnings & Valuation
This table compares Freedom and Heritage Global”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freedom | $2.19 billion | 5.02 | $153.33 million | $2.53 | 68.11 |
| Heritage Global | $50.98 million | 0.86 | $3.59 million | ($0.41) | -3.10 |
Freedom has higher revenue and earnings than Heritage Global. Heritage Global is trading at a lower price-to-earnings ratio than Freedom, indicating that it is currently the more affordable of the two stocks.
Summary
Freedom beats Heritage Global on 10 of the 13 factors compared between the two stocks.
About Freedom
Freedom Holding Corp., through its subsidiaries, provides securities brokerage, securities dealing, market making, investment research, investment counseling, and investment banking services. It offers retail brokerage services for exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange traded options and futures contracts, government bonds, and mutual funds; securities trading; underwriting services; margin lending services collateralized by securities and cash in the customer’s account; various investment education and training courses; investment research services; and commercial banking services, including payment cards, digital mortgages, and digital business and digital auto loans, as well as Freedom Box, a package of payment acquiring services. The company also provides capital raising solutions for corporate clients through initial public offerings and follow-on offerings; and debt capital markets solutions that focuses on structuring and distributing private and public debt for various purposes, including buyouts, acquisitions, growth capital financings, and recapitalizations, as well as information processing services. In addition, it facilitates repurchase and reverse repurchase agreements in proprietary trading activities; and covers short positions and settle other securities obligations to accommodate customers’ needs and finance its inventory positions. Further, the company offers proprietary trading and investment services, as well as insurance products; and Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Eastern Europe, rest of Europe, the United States, Russia, the Middle East, and Caucasus. The company was formerly known as BMB Munai, Inc. and changed its name to Freedom Holding Corp. Freedom Holding Corp. was incorporated in 1981 and is headquartered in Almaty, Kazakhstan.
About Heritage Global
Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.
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