Fairfax Financial (OTCMKTS:FRFHF) and Maiden (NASDAQ:MHLD) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Valuation and Earnings
This table compares Fairfax Financial and Maiden’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fairfax Financial||$21.53 billion||0.56||$2.00 billion||N/A||N/A|
|Maiden||$576.14 million||0.48||-$131.90 million||N/A||N/A|
Risk and Volatility
Fairfax Financial has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Maiden has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
This is a breakdown of current recommendations for Fairfax Financial and Maiden, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fairfax Financial presently has a consensus target price of $588.75, indicating a potential upside of 31.71%. Maiden has a consensus target price of $2.00, indicating a potential downside of 37.11%. Given Fairfax Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Fairfax Financial is more favorable than Maiden.
This table compares Fairfax Financial and Maiden’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
0.6% of Fairfax Financial shares are owned by institutional investors. Comparatively, 23.1% of Maiden shares are owned by institutional investors. 12.4% of Maiden shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Fairfax Financial beats Maiden on 7 of the 13 factors compared between the two stocks.
Fairfax Financial Company Profile
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Insurance and Reinsurance, Run-off, and Non-Insurance Companies segments. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products. In addition, it retails home improvement goods, toys and baby products, golf equipment, sports apparel and accessories, housewares and home dÃ©cors, and tableware and gifts; invests in retail business; and owns and operates holiday resorts. Further, the company provides integrated travel and travel-related financial services; originates, processes, and distributes pulses and staple foods; creates, produces, and distributes entertainment content; and provision of pet medical insurance and database services, as well as media and marketing solutions. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.
Maiden Company Profile
Maiden Holdings, Ltd., through its subsidiaries, provides property and casualty reinsurance solutions to regional and specialty insurers in Europe, the United States, and internationally. It operates in two segments: Diversified Reinsurance and AmTrust Reinsurance. The company writes treaties on a quota share basis and excess of loss basis. It also offers auto and credit life insurance products through its insurer partners to retail clients; and a range of legacy services to small insurance companies. The company was founded in 2007 and is headquartered in Pembroke, Bermuda.
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