Head-To-Head Analysis: SEI Investments (NASDAQ:SEIC) versus Fairfax India (OTCMKTS:FFXDF)

SEI Investments (NASDAQ:SEIC) and Fairfax India (OTCMKTS:FFXDF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

SEI Investments has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Fairfax India has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SEI Investments and Fairfax India, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEI Investments	0	2	7	0	2.78
Fairfax India	0	0	0	0	0.00

SEI Investments presently has a consensus target price of $108.83, suggesting a potential upside of 19.53%. Given SEI Investments’ stronger consensus rating and higher probable upside, analysts clearly believe SEI Investments is more favorable than Fairfax India.

Institutional & Insider Ownership

70.6% of SEI Investments shares are held by institutional investors. Comparatively, 0.2% of Fairfax India shares are held by institutional investors. 14.6% of SEI Investments shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEI Investments	31.17%	30.98%	25.54%
Fairfax India	N/A	13.76%	10.76%

Valuation and Earnings

This table compares SEI Investments 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
SEI Investments	$2.30 billion	4.79	$715.30 million	$5.63	16.17
Fairfax India	$608.85 million	4.13	$410.53 million	$3.04	6.13

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

Summary

SEI Investments beats Fairfax India on 14 of the 14 factors compared between the two stocks.

About SEI Investments

SEI Investments Company is a publicly owned asset management holding company. Through its subsidiaries, the firm provides wealth management, retirement and investment solutions, asset management, asset administration, investment processing outsourcing solutions, financial services, and investment advisory services to its clients. It provides its services to private banks, independent financial advisers, institutional investors, investment managers, investment advisors, wealth management organizations, corporations, retirement scheme sponsors, not-for-profit organizations, hedge fund managers, registered investment advisers, independent broker-dealers, financial planners, life insurance agents, defined-benefit schemes, defined-contribution schemes, endowments, foundations, and board-designated fund, through its subsidiaries. Through its subsidiaries, the firm manages separate client-focused portfolios. It also launches and manages equity, fixed income, and balanced mutual funds, through its subsidiaries. Through its subsidiaries, the firm invests in public equity and fixed income markets. It employs fundamental and quantitative analysis with a focus on top-down and bottom-up analysis to make its investments, through its subsidiaries. SEI Investments Company was founded in 1968 and is based in Oaks, Pennsylvania.

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.