Financial Contrast: FG Nexus (NASDAQ:FGNX) & Cannae (NYSE:CNNE)

Cannae (NYSE:CNNE) and FG Nexus (NASDAQ:FGNX) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Risk & Volatility

Cannae has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, FG Nexus has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cannae and FG Nexus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannae	$423.60 million	1.62	-$513.20 million	($3.02)	-5.25
FG Nexus	$2.44 million	15.04	-$66.74 million	($6.98)	-1.12

FG Nexus has lower revenue, but higher earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than FG Nexus, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cannae and FG Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-38.18%	-14.10%	-10.60%
FG Nexus	-4,888.86%	-95.68%	-75.45%

Analyst Recommendations

This is a breakdown of recent ratings for Cannae and FG Nexus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	1	0	2	0	2.33
FG Nexus	1	0	2	0	2.33

Cannae currently has a consensus target price of $17.00, indicating a potential upside of 7.30%. FG Nexus has a consensus target price of $35.00, indicating a potential upside of 348.72%. Given FG Nexus’ higher probable upside, analysts plainly believe FG Nexus is more favorable than Cannae.

Institutional and Insider Ownership

88.1% of Cannae shares are owned by institutional investors. Comparatively, 3.1% of FG Nexus shares are owned by institutional investors. 10.9% of Cannae shares are owned by insiders. Comparatively, 4.1% of FG Nexus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Cannae beats FG Nexus on 8 of the 12 factors compared between the two stocks.

About Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

About FG Nexus

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.