Fairfax India (OTCMKTS:FFXDF) versus Hamilton Lane (NASDAQ:HLNE) Critical Comparison

Hamilton Lane (NASDAQ:HLNEGet Free Report) and Fairfax India (OTCMKTS:FFXDFGet Free Report) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations for Hamilton Lane and Fairfax India, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hamilton Lane 0 4 6 0 2.60
Fairfax India 0 0 0 0 0.00

Hamilton Lane currently has a consensus price target of $153.13, indicating a potential upside of 75.79%. Given Hamilton Lane’s stronger consensus rating and higher possible upside, research analysts plainly believe Hamilton Lane is more favorable than Fairfax India.

Volatility and Risk

Hamilton Lane has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Fairfax India has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hamilton Lane $712.96 million 6.81 $217.42 million $5.57 15.64
Fairfax India $608.85 million 3.86 $410.53 million $1.85 9.42

Fairfax India has lower revenue, but higher earnings than Hamilton Lane. Fairfax India is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hamilton Lane and Fairfax India’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hamilton Lane 30.59% 27.82% 16.02%
Fairfax India N/A 8.20% 6.44%

Insider and Institutional Ownership

97.4% of Hamilton Lane shares are owned by institutional investors. Comparatively, 0.2% of Fairfax India shares are owned by institutional investors. 22.2% of Hamilton Lane shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Hamilton Lane beats Fairfax India on 13 of the 14 factors compared between the two stocks.

About Hamilton Lane

(Get Free Report)

Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.

About Fairfax India

(Get Free Report)

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.

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