Critical Survey: Royalty Management (NASDAQ:RMCO) versus Fairfax India (OTCMKTS:FFXDF)

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

Valuation & Earnings

This table compares Fairfax India and Royalty Management”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fairfax India	$100.05 million	22.46	-$41.17 million	$0.24	69.28
Royalty Management	$810,000.00	41.31	-$110,000.00	($0.01)	-221.00

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

Insider and Institutional Ownership

0.2% of Fairfax India shares are held by institutional investors. Comparatively, 67.2% of Royalty Management shares are held by institutional investors. 57.1% of Royalty Management 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fairfax India	N/A	1.18%	0.93%
Royalty Management	-9.22%	-2.94%	-2.13%

Analyst Recommendations

This is a breakdown of recent ratings for Fairfax India and Royalty Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fairfax India	0	0	0	0	0.00
Royalty Management	1	1	1	0	2.00

Risk & Volatility

Fairfax India has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Royalty Management has a beta of -0.04, suggesting that its share price is 104% less volatile than the S&P 500.

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.

About Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.