First American Financial Corporation (FAF) vs Fidelity National Financial, Inc. (FNF)

First American Financial Corporation and Fidelity National Financial, Inc. are both Insurance Specialty companies. Fidelity National Financial, Inc. is the larger, with a market value of $11.5B against $7.0B — 1.7× the size. First American Financial Corporation trades at the lower P/E: 9.5× against 15.2×. First American Financial Corporation grew revenue faster over the last twelve months: 14.1% against 13.0%. First American Financial Corporation has the higher net margin (9.05% vs 5.03%) and the higher return on invested capital (14.7% vs 11.3%). Both pay a dividend; Fidelity National Financial, Inc. yields more (4.80% vs 3.33%). Across the 21 metrics below, First American Financial Corporation leads on 15 and Fidelity National Financial, Inc. on 6.

Valuation

Metric FAF FNF Insurance Specialty median
P/E 9.54 15.17 9.49
P/S 0.86 0.75 1.69
P/B 1.29 1.30 1.23
Price to free cash flow 8.66 2.11 8.44
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.48% 6.59% 10.48%
Free cash flow yield 11.55% 47.31% 10.87%

Profitability

Metric FAF FNF Insurance Specialty median
Gross margin 100.00% 55.91% 56.22%
Operating margin 15.19% 12.91% 15.19%
Net margin 9.05% 5.03% 13.80%
Free cash flow margin 9.96% 35.34% 34.47%
Return on equity 13.65% 8.76% 12.01%
Return on assets 4.12% 0.71% 3.55%
Return on invested capital 14.70% 11.32% 9.88%

Growth

Metric FAF FNF Insurance Specialty median
Revenue growth (TTM) 14.14% 13.03% 7.68%
EPS growth (last fiscal year) 376.19% (50.71%) 8.65%
Revenue growth, 5-year CAGR 1.01% 6.03% 2.24%
Net income growth, 5-year CAGR (2.23%) (15.85%) 0.00%

Health

Metric FAF FNF Insurance Specialty median
Debt to equity 0.29 0.50 0.16
Current ratio 0.89 0.25 0.52
Net debt to EBITDA 0.13 0.71 0.28

Dividend

Metric FAF FNF Insurance Specialty median
Dividend yield 3.33% 4.80% 2.06%
Payout ratio 0.32 0.73 0.19

Size

Metric FAF FNF Insurance Specialty median
Market cap 6.96b 11.50b 3.31b

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