Fidelity National Financial (NYSE:FNF – Get Free Report) and American International Group (NYSE:AIG – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.
Profitability
This table compares Fidelity National Financial and American International Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelity National Financial | 7.93% | 14.30% | 1.28% |
| American International Group | 11.51% | 7.88% | 2.04% |
Analyst Ratings
This is a breakdown of current recommendations for Fidelity National Financial and American International Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelity National Financial | 0 | 1 | 4 | 0 | 2.80 |
| American International Group | 0 | 11 | 8 | 2 | 2.57 |
Earnings & Valuation
This table compares Fidelity National Financial and American International Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fidelity National Financial | $13.72 billion | 1.17 | $1.27 billion | $4.30 | 13.82 |
| American International Group | $27.39 billion | 1.50 | -$1.40 billion | $5.50 | 13.85 |
Fidelity National Financial has higher earnings, but lower revenue than American International Group. Fidelity National Financial is trading at a lower price-to-earnings ratio than American International Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
81.2% of Fidelity National Financial shares are held by institutional investors. Comparatively, 90.6% of American International Group shares are held by institutional investors. 5.5% of Fidelity National Financial shares are held by company insiders. Comparatively, 0.5% of American International Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Fidelity National Financial has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, American International Group has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.
Dividends
Fidelity National Financial pays an annual dividend of $2.08 per share and has a dividend yield of 3.5%. American International Group pays an annual dividend of $1.80 per share and has a dividend yield of 2.4%. Fidelity National Financial pays out 48.4% of its earnings in the form of a dividend. American International Group pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fidelity National Financial has increased its dividend for 1 consecutive years and American International Group has increased its dividend for 3 consecutive years.
Summary
American International Group beats Fidelity National Financial on 10 of the 18 factors compared between the two stocks.
About Fidelity National Financial
Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred and immediate annuities, as well as indexed universal life insurance products; and funding agreements and pension risk transfer (PRT) solutions. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was incorporated in 2005 and is headquartered in Jacksonville, Florida.
About American International Group
American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: General Insurance, Life and Retirement, and Other Operations. The General Insurance segment provides commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products; and professional liability insurance. This segment offers marine, energy-related property insurance, aviation, political risk, trade credit, trade finance, and portfolio solutions, as well as operates reinsurance business; voluntary and sponsor-paid personal accident, and supplemental health products; and personal auto and personal property insurance. Its Life and Retirement segment offers individual retirement products, including variable, fixed index, and fixed annuities, as well as retail mutual funds; group retirement products comprising record-keeping, plan administrative and compliance services, financial planning, and advisory solutions; life insurance, including term and universal life insurance; and institutional markets products, which includes wrap products, structured settlement, pension risk transfer annuities, corporate and bank-owned life insurance, high net worth, and guaranteed investment contract products. It distributes its products through a network of brokers, agents, advisors, banks, and other distributors. The company was founded in 1919 and is headquartered in New York, New York.
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