Fairfax Financial (OTCMKTS:FFXDF) and Firsthand Technology Value Fund (NASDAQ:SVVC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Earnings & Valuation

This table compares Fairfax Financial and Firsthand Technology Value Fund’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fairfax Financial $712.69 million 1.51 $516.34 million N/A N/A
Firsthand Technology Value Fund $1.79 million 12.82 -$64.53 million N/A N/A

Fairfax Financial has higher revenue and earnings than Firsthand Technology Value Fund.

Volatility & Risk

Fairfax Financial has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Firsthand Technology Value Fund has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Profitability

This table compares Fairfax Financial and Firsthand Technology Value Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairfax Financial N/A 0.95% 0.73%
Firsthand Technology Value Fund N/A 3.78% 3.59%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fairfax Financial and Firsthand Technology Value Fund, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairfax Financial 0 0 1 0 3.00
Firsthand Technology Value Fund 0 0 0 0 N/A

Insider & Institutional Ownership

0.1% of Fairfax Financial shares are held by institutional investors. Comparatively, 10.1% of Firsthand Technology Value Fund shares are held by institutional investors. 9.6% of Firsthand Technology Value Fund shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

About Fairfax Financial

Fairfax India Holdings Corporation, an investment holding company, engages in the investment activities 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 in, or dependent on, India. The company was founded in 2014 and is headquartered in Toronto, Canada. Fairfax India Holdings Corporation is a subsidiary of Fairfax Financial Holdings Limited.

About Firsthand Technology Value Fund

Firsthand Technology Value Fund, Inc. is a business development company specializes in investments in start-up, late, development stage, and PIPEs. It seeks to invest in pre-IPO companies. The fund also seeks to make investments in companies with operating histories that are unprofitable or marginally profitable, that have negative net worth, or that are involved in bankruptcy or reorganization proceedings. In addition, it also makes investments in connection with the acquisition or divestiture of companies or divisions of companies. The fund seeks to invest through direct investments in private companies, negotiations with selling shareholders, and in organized secondary marketplaces for private securities. It may also invest in micro-cap publicly traded companies and also make investments in securities of public companies. The fund seeks to invest in private technology, information technology, cleantech sector, and companies that possess patents and other defensible intellectual property rights with a focus on Internet, consumer electronics, computer hardware, computer software, social networking, computer peripherals, solar photovoltaic, energy efficiency, solid-state lighting, water purification, wind-generated electricity, fuel cells, bio-fuels, electronic components, semiconductors, telecommunications, and advanced materials. Cleantech companies include those engaged in the sale of goods and services designed to harness renewable energy and materials, eliminate emissions and waste, and reduce the use of natural resources. It invests primarily in equity securities of private companies in the United States. However the fund also invests in securities of public companies located outside of the United States. It seeks to invest between $1 million and $10 million each in its investee companies. The fund structures its equity investments as preferred stock, common stock, warrants, limited partnership interests, options, other beneficial ownership interests, convertible debt, short term debt investments, high-yield bonds, and distressed debt. It prefers to control, be represented on, or have observer rights on the board of directors of a portfolio company. The fund seeks to exit its investments through strategic acquisition by other industry participants, initial public offering of common stock, or other capital market transaction.

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