Freedom (OTCMKTS:FRHC) and Siebert Financial (NASDAQ:SIEB) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

3.8% of Siebert Financial shares are held by institutional investors. 82.1% of Freedom shares are held by insiders. Comparatively, 67.9% of Siebert Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Freedom and Siebert Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Freedom $55.22 million 9.18 $19.23 million N/A N/A
Siebert Financial $13.11 million 22.42 $2.15 million N/A N/A

Freedom has higher revenue and earnings than Siebert Financial.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Freedom and Siebert Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Freedom 0 0 0 0 N/A
Siebert Financial 0 0 0 0 N/A

Risk and Volatility

Freedom has a beta of -0.9, suggesting that its stock price is 190% less volatile than the S&P 500. Comparatively, Siebert Financial has a beta of -0.45, suggesting that its stock price is 145% less volatile than the S&P 500.

Profitability

This table compares Freedom and Siebert Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Freedom N/A -20.43% -6.99%
Siebert Financial 25.77% 90.11% 75.71%

Summary

Siebert Financial beats Freedom on 6 of the 9 factors compared between the two stocks.

About Freedom

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, investment research and counseling, securities trading, market making, corporate investment banking, and underwriting services. The company offers investment 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; capital raising solutions for corporate clients through initial public offerings, follow-on offerings, and private investments in public entities; and debt capital markets solutions for emerging growth and small market companies, and financial sponsors. It has operations primarily in Russia, Kazakhstan, Ukraine, Uzbekistan, Kyrgyzstan, and Cyprus. 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 Siebert Financial

Siebert Financial Corp., through its subsidiaries, engages in the retail discount brokerage and investment advisory businesses. The company offers online and traditional brokerage, and related services to retail investors through a broker on the telephone, a wireless device, or through the Internet; various value added services, such as access to account information; independent retail execution services; and retail customer services. It also acts as an agent on various transactions for its self-directed retirement accounts, as well as lends customers a portion of the market value of certain securities held in the customer's account. In addition, the company provides custodial services; and data technology platform that offers services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. It maintains 10 retail discount brokerage offices. The company was founded in 1886 and is headquartered in New York, New York.

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