Freedom (NASDAQ:FRHC – Get Free Report) and Kinnevik (OTCMKTS:KNKBF – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Analyst Ratings
This is a breakdown of current ratings and price targets for Freedom and Kinnevik, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freedom | 0 | 2 | 1 | 0 | 2.33 |
| Kinnevik | 0 | 0 | 0 | 0 | 0.00 |
Freedom presently has a consensus target price of $159.00, indicating a potential upside of 1.01%. Given Freedom’s stronger consensus rating and higher possible upside, analysts clearly believe Freedom is more favorable than Kinnevik.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freedom | $2.19 billion | 4.58 | $153.33 million | $2.53 | 62.22 |
| Kinnevik | N/A | N/A | N/A | C$0.06 | 33.39 |
Freedom has higher revenue and earnings than Kinnevik. Kinnevik is trading at a lower price-to-earnings ratio than Freedom, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Freedom and Kinnevik’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freedom | 6.47% | 10.96% | 1.24% |
| Kinnevik | N/A | N/A | N/A |
Insider & Institutional Ownership
1.3% of Freedom shares are owned by institutional investors. 69.8% of Freedom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Freedom beats Kinnevik on 11 of the 11 factors compared between the two stocks.
About Freedom
Freedom Holding Corp., through its subsidiaries, provides securities brokerage, securities dealing, market making, investment research, investment counseling, and investment banking services. It offers retail 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; securities trading; underwriting services; margin lending services collateralized by securities and cash in the customer’s account; various investment education and training courses; investment research services; and commercial banking services, including payment cards, digital mortgages, and digital business and digital auto loans, as well as Freedom Box, a package of payment acquiring services. The company 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, as well as information processing services. In addition, it facilitates repurchase and reverse repurchase agreements in proprietary trading activities; and covers short positions and settle other securities obligations to accommodate customers’ needs and finance its inventory positions. Further, the company offers proprietary trading and investment services, as well as insurance products; and Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Eastern Europe, rest of Europe, the United States, Russia, the Middle East, and Caucasus. 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.
About Kinnevik
Kinnevik AB is a venture capital firm specializing in investments in early to late venture and growth capital. The firm also prefers indirect investments in venture capital funds. It prefers to invest in digital consumer business, education, communication, e-commerce and marketplaces, entertainment, healthcare, and financial services but may also invest in other areas. The firm invests worldwide, especially in Europe with a focus on the Nordics, Latin America, Asia, Australia, Africa, and North America. The firm looks for disruptive, technology-enabled and value-added consumer services in developed and emerging markets. It takes an active role on the boards of its subsidiaries and associated companies. It acts as a long-term lead shareholder in large listed entities. Kinnevik AB was founded in 1936 and is based in Stockholm, Sweden and additional office in London, United Kingdom. Kinnevik AB formerly known as Investment AB Kinnevik.
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