FAF vs. STC, FNF, CIGI, OMF, HLNE, PB, ADC, SNV, TRNO, and ESNT
Should you be buying First American Financial stock or one of its competitors? The main competitors of First American Financial include Stewart Information Services (STC), Fidelity National Financial (FNF), Colliers International Group (CIGI), OneMain (OMF), Hamilton Lane (HLNE), Prosperity Bancshares (PB), Agree Realty (ADC), Synovus Financial (SNV), Terreno Realty (TRNO), and Essent Group (ESNT). These companies are all part of the "finance" sector.
Stewart Information Services (NYSE:STC) and First American Financial (NYSE:FAF) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, dividends, profitability, earnings, community ranking, analyst recommendations, valuation and institutional ownership.
First American Financial received 85 more outperform votes than Stewart Information Services when rated by MarketBeat users. Likewise, 60.40% of users gave First American Financial an outperform vote while only 52.22% of users gave Stewart Information Services an outperform vote.
Stewart Information Services pays an annual dividend of $1.90 per share and has a dividend yield of 3.2%. First American Financial pays an annual dividend of $2.12 per share and has a dividend yield of 3.9%. Stewart Information Services pays out 171.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First American Financial pays out 101.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stewart Information Services has increased its dividend for 3 consecutive years and First American Financial has increased its dividend for 14 consecutive years. First American Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
96.8% of Stewart Information Services shares are owned by institutional investors. Comparatively, 85.5% of First American Financial shares are owned by institutional investors. 1.5% of Stewart Information Services shares are owned by insiders. Comparatively, 3.6% of First American Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
First American Financial has a net margin of 3.61% compared to First American Financial's net margin of 1.35%. Stewart Information Services' return on equity of 8.27% beat First American Financial's return on equity.
Stewart Information Services presently has a consensus price target of $67.33, suggesting a potential upside of 13.49%. First American Financial has a consensus price target of $67.25, suggesting a potential upside of 23.76%. Given Stewart Information Services' higher possible upside, analysts clearly believe First American Financial is more favorable than Stewart Information Services.
First American Financial has higher revenue and earnings than Stewart Information Services. First American Financial is trading at a lower price-to-earnings ratio than Stewart Information Services, indicating that it is currently the more affordable of the two stocks.
Stewart Information Services has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, First American Financial has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
In the previous week, Stewart Information Services had 3 more articles in the media than First American Financial. MarketBeat recorded 7 mentions for Stewart Information Services and 4 mentions for First American Financial. Stewart Information Services' average media sentiment score of 0.85 beat First American Financial's score of 0.53 indicating that First American Financial is being referred to more favorably in the news media.
Summary
First American Financial beats Stewart Information Services on 17 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FAF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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