Reviewing Fairfax India (OTCMKTS:FFXDF) & Artisan Partners Asset Management (NYSE:APAM)

Fairfax India (OTCMKTS:FFXDF) and Artisan Partners Asset Management (NYSE:APAM) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Volatility & Risk

Fairfax India has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fairfax India and Artisan Partners Asset Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fairfax India	0	0	0	0	0.00
Artisan Partners Asset Management	0	4	2	0	2.33

Artisan Partners Asset Management has a consensus target price of $44.25, suggesting a potential downside of 2.47%. Given Artisan Partners Asset Management’s stronger consensus rating and higher probable upside, analysts clearly believe Artisan Partners Asset Management is more favorable than Fairfax India.

Institutional and Insider Ownership

0.2% of Fairfax India shares are owned by institutional investors. Comparatively, 86.5% of Artisan Partners Asset Management shares are owned by institutional investors. 12.5% of Artisan Partners Asset Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Fairfax India and Artisan Partners Asset Management”s 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	23.98	-$41.17 million	$0.24	74.17
Artisan Partners Asset Management	$1.11 billion	3.29	$259.75 million	$3.66	12.40

Artisan Partners Asset Management has higher revenue and earnings than Fairfax India. Artisan Partners Asset Management is trading at a lower price-to-earnings ratio than Fairfax India, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fairfax India and Artisan Partners Asset Management’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%
Artisan Partners Asset Management	22.90%	72.15%	20.11%

Summary

Artisan Partners Asset Management beats Fairfax India on 12 of the 14 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 Artisan Partners Asset Management

Artisan Partners Asset Management Inc. is publicly owned investment manager. It provides its services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. It manages separate client-focused equity and fixed income portfolios. The firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of companies across all market capitalization. For fixed income component of its portfolio the firm invests in non-investment grade corporate bonds and secured and unsecured loans. It employs fundamental analysis to create its portfolios. Artisan Partners Asset Management Inc. was founded in 1994 and is based in Milwaukee, Wisconsin with additional offices in Atlanta, Georgia; New York City; San Francisco, California; Leawood, Kansas; and London, United Kingdom.