Reviewing Freedom Financial (OTCMKTS:FDVA) & Inter & Co, Inc. (NASDAQ:INTR)

Inter & Co, Inc. (NASDAQ:INTR) and Freedom Financial (OTCMKTS:FDVA) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Volatility & Risk

Inter & Co, Inc. has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

22.9% of Inter & Co, Inc. shares are held by institutional investors. 13.3% of Freedom Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Inter & Co, Inc. and Freedom Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inter & Co, Inc.	0	0	5	0	3.00
Freedom Financial	0	0	0	0	N/A

Inter & Co, Inc. presently has a consensus target price of $7.56, indicating a potential upside of 20.38%. Given Inter & Co, Inc.’s higher possible upside, equities research analysts clearly believe Inter & Co, Inc. is more favorable than Freedom Financial.

Earnings & Valuation

This table compares Inter & Co, Inc. and Freedom Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inter & Co, Inc.	$5.46 billion	0.50	$60.56 million	$0.23	27.30
Freedom Financial	$60.42 million	1.16	$2.32 million	$0.34	31.21

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 Inter & Co, Inc. and Freedom Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Inter & Co, Inc.	8.85%	7.85%	1.03%
Freedom Financial	3.87%	3.26%	0.23%

Summary

Inter & Co, Inc. beats Freedom Financial on 9 of the 13 factors compared between the two stocks.

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.

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.