Axis Capital Holdings Limited (AXS) vs First American Financial Corporation (FAF)

Axis Capital Holdings Limited and First American Financial Corporation are both Insurance Specialty companies. Axis Capital Holdings Limited is the larger, with a market value of $7.2B against $6.5B — 1.1× the size. Axis Capital Holdings Limited trades at the lower P/E: 7.0× against 9.0×. First American Financial Corporation grew revenue faster over the last twelve months: 22.6% against 9.10%. Axis Capital Holdings Limited has the higher net margin (15.8% vs 9.33%) and the lower return on invested capital (12.5% vs 17.0%). Both pay a dividend; First American Financial Corporation yields more (3.48% vs 1.77%). Across the 21 metrics below, Axis Capital Holdings Limited leads on 12 and First American Financial Corporation on 9.

Valuation

Metric AXS FAF Insurance Specialty median
P/E 6.96 8.97 8.97
P/S 1.07 0.83 1.87
P/B 1.23 1.18 1.15
Price to free cash flow 3.05 8.00 8.00
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 14.37% 11.15% 10.57%
Free cash flow yield 32.83% 12.50% 12.08%

Profitability

Metric AXS FAF Insurance Specialty median
Gross margin 30.67% 100.00% 73.81%
Operating margin 20.15% 15.52% 17.70%
Net margin 15.78% 9.33% 13.80%
Free cash flow margin 35.24% 10.44% 34.47%
Return on equity 18.55% 13.81% 12.01%
Return on assets 3.04% 4.23% 4.12%
Return on invested capital 12.51% 16.97% 8.77%

Growth

Metric AXS FAF Insurance Specialty median
Revenue growth (TTM) 9.10% 22.55% 7.53%
EPS growth (last fiscal year) 0.00% 376.19% 5.61%
Revenue growth, 5-year CAGR 6.27% 1.01% 2.24%
Net income growth, 5-year CAGR 0.00% (2.23%) 0.00%

Health

Metric AXS FAF Insurance Specialty median
Debt to equity 0.24 0.27 0.15
Current ratio 0.63 1.18 0.53
Net debt to EBITDA 0.07 0.13 0.28

Dividend

Metric AXS FAF Insurance Specialty median
Dividend yield 1.77% 3.48% 2.09%
Payout ratio 0.13 0.31 0.20

Size

Metric AXS FAF Insurance Specialty median
Market cap 7.15b 6.48b 3.07b

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