First American Corporation (The) (NYSE: FAF) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it compare to its competitors? We will compare First American Corporation (The) to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, valuation, institutional ownership and dividends.

Insider & Institutional Ownership

83.9% of First American Corporation (The) shares are held by institutional investors. Comparatively, 60.5% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 3.1% of First American Corporation (The) shares are held by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

First American Corporation (The) has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, First American Corporation (The)’s competitors have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Profitability

This table compares First American Corporation (The) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First American Corporation (The) 4.88% 14.30% 4.95%
First American Corporation (The) Competitors 9.60% 4.92% 2.63%

Dividends

First American Corporation (The) pays an annual dividend of $1.52 per share and has a dividend yield of 2.8%. First American Corporation (The) pays out 60.1% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 32.7% of their earnings in the form of a dividend. First American Corporation (The) has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for First American Corporation (The) and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First American Corporation (The) 0 1 1 0 2.50
First American Corporation (The) Competitors 621 2286 2172 44 2.32

First American Corporation (The) currently has a consensus target price of $49.50, indicating a potential downside of 9.47%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.41%. Given First American Corporation (The)’s competitors higher probable upside, analysts clearly believe First American Corporation (The) has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares First American Corporation (The) and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
First American Corporation (The) $5.58 billion $342.99 million 21.61
First American Corporation (The) Competitors $11.51 billion $1.16 billion 49.25

First American Corporation (The)’s competitors have higher revenue and earnings than First American Corporation (The). First American Corporation (The) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

First American Corporation (The) competitors beat First American Corporation (The) on 9 of the 15 factors compared.

First American Corporation (The) Company Profile

First American Financial Corporation, through its subsidiaries, is engaged in the business of providing financial services. The Company operates through the title insurance and services segment, and specialty insurance segment. The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. The title insurance and services segment also provides products, services and solutions involving the use of property related data, including data derived from its database, which are designed to manage risk or otherwise facilitate real estate transactions. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism and other types of property damage.

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