Head-To-Head Survey: Great Elm Capital Group (NASDAQ:GECC) versus Fairfax India (OTCMKTS:FFXDF)

Great Elm Capital Group (NASDAQ:GECC) and Fairfax India (OTCMKTS:FFXDF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Great Elm Capital Group and Fairfax India’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Great Elm Capital Group	-70.13%	14.16%	4.88%
Fairfax India	N/A	8.20%	6.44%

Institutional & Insider Ownership

38.8% of Great Elm Capital Group shares are held by institutional investors. Comparatively, 0.2% of Fairfax India shares are held by institutional investors. 3.9% of Great Elm Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Great Elm Capital Group 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
Great Elm Capital Group	$49.99 million	1.72	-$31.79 million	($2.39)	-2.59
Fairfax India	$608.85 million	3.75	$410.53 million	$1.85	9.16

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

Volatility & Risk

Great Elm Capital Group has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Fairfax India has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Great Elm Capital Group and Fairfax India, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Elm Capital Group	1	3	0	0	1.75
Fairfax India	0	0	0	0	0.00

Great Elm Capital Group currently has a consensus price target of $10.50, suggesting a potential upside of 69.63%. Given Great Elm Capital Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Great Elm Capital Group is more favorable than Fairfax India.

Summary

Fairfax India beats Great Elm Capital Group on 8 of the 13 factors compared between the two stocks.

About Great Elm Capital Group

Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.

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.