Analyzing Freedom (FRHC) & Its Peers

Freedom (NASDAQ: FRHC) is one of 51 public companies in the “Security brokers & dealers” industry, but how does it contrast to its competitors? We will compare Freedom to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Earnings and Valuation

This table compares Freedom and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Freedom $121.90 million $24.84 million 149.05
Freedom Competitors $6.29 billion $12.30 billion 27.79

Freedom’s competitors have higher revenue and earnings than Freedom. Freedom is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Freedom and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freedom 0 0 0 0 N/A
Freedom Competitors 489 2151 2159 70 2.37

As a group, “Security brokers & dealers” companies have a potential upside of 7.29%. Given Freedom’s competitors higher possible upside, analysts clearly believe Freedom has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

3.2% of Freedom shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Security brokers & dealers” companies are owned by institutional investors. 72.9% of Freedom shares are owned by company insiders. Comparatively, 25.4% of shares of all “Security brokers & dealers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Freedom has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Freedom’s competitors have a beta of 1.69, meaning that their average stock price is 69% more volatile than the S&P 500.

Profitability

This table compares Freedom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freedom 36.16% 53.54% 8.89%
Freedom Competitors 33.64% 20.12% 5.61%

About Freedom

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking, and underwriting services. The company offers investment 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; Margin Lending services collateralized by securities and cash in the customer's account; various investment education and training courses; and investment research services. It 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. In addition, the company is involved in trading, investment, and brokerage activities. Further, it act as an intermediary between borrowers and lenders of short-term funds and provide funding for various inventory positions; and employs repurchase and reverse repurchase agreements in proprietary trading activities. It has operations primarily in Russia, Kazakhstan, Ukraine, Uzbekistan, Kyrgyzstan, and Cyprus. 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.

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