Fidelity National Financial (NYSE: FNF) and Investors Title (NASDAQ:ITIC) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
This table compares Fidelity National Financial and Investors Title’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Financial||8.13%||11.71%||5.76%|
Fidelity National Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Investors Title pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. Fidelity National Financial pays out 52.9% of its earnings in the form of a dividend. Fidelity National Financial has raised its dividend for 6 consecutive years. Fidelity National Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Fidelity National Financial and Investors Title’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fidelity National Financial||$7.26 billion||1.44||$771.00 million||$2.27||16.76|
|Investors Title||$161.65 million||2.29||$25.70 million||N/A||N/A|
Fidelity National Financial has higher revenue and earnings than Investors Title.
Risk and Volatility
Fidelity National Financial has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Investors Title has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
Institutional & Insider Ownership
83.0% of Fidelity National Financial shares are owned by institutional investors. Comparatively, 42.1% of Investors Title shares are owned by institutional investors. 5.0% of Fidelity National Financial shares are owned by company insiders. Comparatively, 27.5% of Investors Title shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Fidelity National Financial and Investors Title, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Financial||0||1||5||0||2.83|
Fidelity National Financial currently has a consensus target price of $44.00, indicating a potential upside of 15.64%. Given Fidelity National Financial’s higher probable upside, equities analysts clearly believe Fidelity National Financial is more favorable than Investors Title.
Fidelity National Financial beats Investors Title on 8 of the 15 factors compared between the two stocks.
Fidelity National Financial Company Profile
Fidelity National Financial, Inc., together with its subsidiaries, provides title insurance, technology, and transaction services to the real estate and mortgage industries in the United States. The company operates in Title, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including collection and trust activities, trustee sales guarantees, recordings and conveyances, and home warranty insurance. The company also offers other title related services used in the production and management of mortgage loans. In addition, it engages in real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.
Investors Title Company Profile
Investors Title Company is an insurance holding company. The Company, through its subsidiaries, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC), is engaged in issuance of residential and commercial title insurance, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). The Company also provides tax-deferred real property exchange services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and Investors Title Accommodation Corporation (ITAC); investment management and trust services to individuals, trusts and other entities through its subsidiary, Investors Trust Company (Investors Trust), and management services to title insurance agencies through its subsidiary, Investors Title Management Services (ITMS). In addition, the Company operates in the issuance of residential and commercial title insurance through ITIC and NITIC segment.
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