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

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

Volatility & Risk

Artisan Partners Asset Management has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Fairfax India has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

86.5% of Artisan Partners Asset Management shares are held by institutional investors. Comparatively, 0.2% of Fairfax India shares are held by institutional investors. 12.5% of Artisan Partners Asset Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Artisan Partners Asset Management and Fairfax India’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Artisan Partners Asset Management	22.90%	72.15%	20.11%
Fairfax India	N/A	1.18%	0.93%

Valuation and Earnings

This table compares Artisan Partners Asset Management and Fairfax India”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Artisan Partners Asset Management	$1.11 billion	3.15	$259.75 million	$3.66	11.87
Fairfax India	$100.05 million	23.47	-$41.17 million	$0.24	72.58

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.

Analyst Recommendations

This is a breakdown of current recommendations for Artisan Partners Asset Management and Fairfax India, as reported by MarketBeat.com.

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

Artisan Partners Asset Management currently has a consensus target price of $44.25, indicating a potential upside of 1.86%. Given Artisan Partners Asset Management’s stronger consensus rating and higher possible upside, analysts plainly believe Artisan Partners Asset Management is more favorable than Fairfax India.

Summary

Artisan Partners Asset Management beats Fairfax India on 12 of the 14 factors compared between the two stocks.

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.

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.