Freedom Financial (OTCMKTS:FDVA – Get Free Report) and Inter & Co, Inc. (NASDAQ:INTR – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Insider & Institutional Ownership
22.9% of Inter & Co, Inc. shares are owned by institutional investors. 13.3% of Freedom Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Freedom Financial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Inter & Co, Inc. has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freedom Financial | 0 | 0 | 0 | 0 | N/A |
| Inter & Co, Inc. | 0 | 0 | 5 | 0 | 3.00 |
Inter & Co, Inc. has a consensus price target of $7.56, indicating a potential upside of 15.95%. Given Inter & Co, Inc.’s higher probable upside, analysts plainly believe Inter & Co, Inc. is more favorable than Freedom Financial.
Earnings & Valuation
This table compares Freedom Financial and Inter & Co, Inc.”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freedom Financial | $60.42 million | 1.15 | $2.32 million | $0.34 | 31.06 |
| Inter & Co, Inc. | $5.46 billion | 0.52 | $60.56 million | $0.23 | 28.35 |
Inter & Co, Inc. has higher revenue and earnings than Freedom Financial. Inter & Co, Inc. is trading at a lower price-to-earnings ratio than Freedom Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Freedom Financial and Inter & Co, Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freedom Financial | 3.87% | 3.26% | 0.23% |
| Inter & Co, Inc. | 8.85% | 7.85% | 1.03% |
Summary
Inter & Co, Inc. beats Freedom Financial on 9 of the 13 factors compared between the two stocks.
About Freedom Financial
Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.
About Inter & Co, Inc.
Inter & Co, Inc., through its subsidiaries, engages in the banking and spending, investments, insurance brokerage businesses. The company's Banking & Spending segment offers banking products and services, including checking accounts, cards, deposits, loans and advances, and other services. It also provides debt collection, foreign exchange, and financial services, as well as global account digital solution. Its investments segments offers acquisition, sale and custody of securities; structure and distributes securities in the capital market; and operated and manages fund portfolios and other assets. The company's Insurance Brokerage segment provides warranties, life, property and automobile insurance, pension, and consortium products. In addition, it offers inter shop and commerce plus services. Inter & Co, Inc. was founded in 1994 and is based in Belo Horizonte, Brazil.
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