Analyzing Freedom (NASDAQ:FRHC) & NCR Atleos (NYSE:NATL)

NCR Atleos (NYSE:NATL) and Freedom (NASDAQ:FRHC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Earnings and Valuation

This table compares NCR Atleos and Freedom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NCR Atleos	$4.35 billion	0.77	$162.00 million	$2.58	17.65
Freedom	$2.19 billion	5.13	$153.33 million	$2.53	69.62

NCR Atleos has higher revenue and earnings than Freedom. NCR Atleos is trading at a lower price-to-earnings ratio than Freedom, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NCR Atleos and Freedom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NCR Atleos	4.44%	83.41%	5.87%
Freedom	6.47%	10.96%	1.24%

Risk and Volatility

NCR Atleos has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Freedom has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

88.7% of NCR Atleos shares are owned by institutional investors. Comparatively, 1.3% of Freedom shares are owned by institutional investors. 0.6% of NCR Atleos shares are owned by insiders. Comparatively, 69.8% of Freedom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for NCR Atleos and Freedom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NCR Atleos	0	4	1	0	2.20
Freedom	0	2	1	0	2.33

NCR Atleos presently has a consensus price target of $50.27, suggesting a potential upside of 10.40%. Freedom has a consensus price target of $159.00, suggesting a potential downside of 9.73%. Given NCR Atleos’ higher possible upside, equities research analysts clearly believe NCR Atleos is more favorable than Freedom.

Summary

NCR Atleos beats Freedom on 7 of the 13 factors compared between the two stocks.

About NCR Atleos

NCR Atleos Corporation operates as a financial technology company in the United States, rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through three segments: Self-Service Banking, Network, and Telecommunications & Technology (T&T). The Self-Service Banking segment offers solutions, including a line of automated teller machine (ATM) and interactive teller machine (ITM) hardware and software, as well as related installation, maintenance, and managed and professional services; and solutions to manage and run the ATM channel end-to-end for financial institutions comprising back office, cash management, software management and ATM deployment, and others. The Network segment provides a network of ATMs and multi-functioning financial services kiosks for financial institutions, fintechs, neobanks, and retailers; Allpoint network for credit unions, banks, digital banks, fintechs, stored-value debit card issuers, and other consumer financial services providers; ReadyCode to convert a digital value to cash or cash to a digital value; ATM branding solutions to financial institutions; ATM management and services to retailers and other businesses; and engages in the buying and selling of Bitcoins. The T&T segment offers managed network and infrastructure services to enterprise clients across various industries through communications service providers and technology manufacturers; and professional, field, and remote services for modern network technologies, including software-defined wide area networking, network functions virtualization, wireless local area networks, optical networking, and edge networks. NCR Atleos Corporation is headquartered in Atlanta, Georgia.

About Freedom

Freedom Holding Corp., through its subsidiaries, provides securities brokerage, securities dealing, market making, investment research, investment counseling, and investment banking services. It offers retail 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; securities trading; underwriting services; 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 business and digital auto loans, as well as Freedom Box, a package of payment acquiring services. The company 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, as well as information processing services. In addition, 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. Further, the company offers proprietary trading and investment services, as well as insurance products; and Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Eastern Europe, rest of Europe, the United States, Russia, the Middle East, and 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.