First American Corporation (The) (NYSE: FAF) is one of 86 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 similar businesses based on the strength of its valuation, analyst recommendations, dividends, institutional ownership, risk, earnings and profitability.

Risk and Volatility

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 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for First American Corporation (The) and its competitors, as provided 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 632 2328 2191 45 2.32

First American Corporation (The) presently has a consensus price target of $49.50, suggesting a potential downside of 9.11%. As a group, “Property & Casualty Insurance” companies have a potential upside of 8.50%. 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.

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 14.5% of their earnings in the form of a dividend. First American Corporation (The) has increased its dividend for 5 consecutive years.

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 8.15% 2.62% 1.63%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
First American Corporation (The) $5.58 billion $342.99 million 21.53
First American Corporation (The) Competitors $11.51 billion $1.16 billion 143.71

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.

Insider and Institutional Ownership

83.3% of First American Corporation (The) shares are held by institutional investors. Comparatively, 59.4% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 3.1% of First American Corporation (The) shares are held by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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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