Freedom (NASDAQ:FRHC) vs. Raymond James (NYSE:RJF) Head to Head Review

Raymond James (NYSE:RJFGet Rating) and Freedom (NASDAQ:FRHCGet Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Volatility & Risk

Raymond James has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Freedom has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Raymond James and Freedom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Raymond James $11.31 billion 2.34 $1.51 billion $6.98 17.60
Freedom $564.66 million 6.30 $217.93 million N/A N/A

Raymond James has higher revenue and earnings than Freedom.

Profitability

This table compares Raymond James and Freedom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Raymond James 13.35% 17.90% 2.09%
Freedom N/A 38.66% 7.31%

Institutional & Insider Ownership

76.8% of Raymond James shares are held by institutional investors. Comparatively, 1.0% of Freedom shares are held by institutional investors. 10.3% of Raymond James shares are held by company insiders. Comparatively, 71.6% of Freedom shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Raymond James and Freedom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Raymond James 0 3 3 0 2.50
Freedom 0 0 0 0 N/A

Raymond James currently has a consensus price target of $121.50, suggesting a potential downside of 1.11%. Given Raymond James’ higher probable upside, research analysts clearly believe Raymond James is more favorable than Freedom.

Summary

Raymond James beats Freedom on 6 of the 11 factors compared between the two stocks.

About Raymond James

(Get Rating)

Raymond James Financial, Inc., a financial holding company, through its subsidiaries, engages in the underwriting, distribution, trading, and brokerage of equity and debt securities, and the sale of mutual funds and other investment products in the United States, Canada, Europe, and internationally. The company operates through Private Client Group, Capital Markets, Asset Management, RJ Bank, and Other segments. The Private Client Group segment provides securities brokerage services, including the sale of equities, mutual funds, fixed income products, and insurance products to their individual clients; and borrowing and lending of securities to and from other broker-dealers, financial institutions, and other counterparties. The Capital Markets segment offers securities brokerage, trading, and research services to institutions with a focus on sale of the United States and Canadian equities and fixed income products; and manages and participates in underwritings, merger and acquisition services, and public finance activities. The Asset Management segment engages in the operations of Eagle, the Eagle Family of Funds, Cougar, the asset management operations of Raymond James & Associates, trust services of Raymond James Trust, and other fee-based asset management programs. The RJ Bank segment provides corporate loans, SBL, tax-exempt loans, and residential loans. The Other segment engages in private equity activities, including various direct and third party private equity investments; and private equity funds. Raymond James Financial, Inc. was founded in 1962 and is based in St. Petersburg, Florida.

About Freedom

(Get Rating)

Freedom Holding Corp., through its subsidiaries, provides retail securities brokerage, research, investment counseling, securities trading, market making, retail banking, 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; 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 auto loans, as well as insurance products. It 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. In addition, the company is involved in trading, investment, and brokerage activities. Further, 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. Additionally, the company offers Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Europe, the United States, Russia, and the Middle East/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.

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