Critical Survey: Janus Henderson Group (NYSE:JHG) and Fairfax India (OTCMKTS:FFXDF)

Fairfax India (OTCMKTS:FFXDF) and Janus Henderson Group (NYSE:JHG) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Profitability

This table compares Fairfax India and Janus Henderson Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fairfax India	N/A	1.18%	0.93%
Janus Henderson Group	19.82%	12.35%	8.20%

Analyst Recommendations

This is a summary of current ratings and price targets for Fairfax India and Janus Henderson Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fairfax India	0	0	0	0	0.00
Janus Henderson Group	0	7	3	1	2.45

Janus Henderson Group has a consensus price target of $47.67, indicating a potential downside of 0.75%. Given Janus Henderson Group’s stronger consensus rating and higher possible upside, analysts clearly believe Janus Henderson Group is more favorable than Fairfax India.

Risk and Volatility

Fairfax India has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Janus Henderson Group has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares Fairfax India and Janus Henderson Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fairfax India	$100.05 million	24.31	-$41.17 million	$0.24	75.17
Janus Henderson Group	$2.47 billion	3.00	$408.90 million	$3.41	14.08

Janus Henderson Group has higher revenue and earnings than Fairfax India. Janus Henderson 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.

Institutional and Insider Ownership

0.2% of Fairfax India shares are owned by institutional investors. Comparatively, 87.9% of Janus Henderson Group shares are owned by institutional investors. 19.6% of Janus Henderson Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Janus Henderson Group beats Fairfax India on 13 of the 15 factors compared between the two stocks.

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.

About Janus Henderson Group

Janus Henderson Group plc is an asset management holding entity. Through its subsidiaries, the firm provides services to institutional, retail clients, and high net worth clients. It manages separate client-focused equity and fixed income portfolios. The firm also manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity and fixed income markets, as well as invests in real estate and private equity. Janus Henderson Group plc was founded in 1934 and is based in London, United Kingdom with additional offices in Jersey, United Kingdom and Sydney, Australia.