Stewart Information Services (NYSE:STC) versus Primerica (NYSE:PRI) Head to Head Comparison

Stewart Information Services (NYSE:STC) and Primerica (NYSE:PRI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Profitability

This table compares Stewart Information Services and Primerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stewart Information Services	3.58%	9.39%	4.77%
Primerica	22.86%	30.90%	5.41%

Volatility and Risk

Stewart Information Services has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Primerica has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Stewart Information Services and Primerica”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stewart Information Services	$3.37 billion	0.38	$115.54 million	$3.99	10.45
Primerica	$3.29 billion	2.70	$751.23 million	$25.31	11.57

Primerica has lower revenue, but higher earnings than Stewart Information Services. Stewart Information Services is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Stewart Information Services and Primerica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stewart Information Services	1	2	4	0	2.43
Primerica	0	5	2	0	2.29

Stewart Information Services presently has a consensus price target of $75.75, indicating a potential upside of 81.70%. Primerica has a consensus price target of $318.80, indicating a potential upside of 8.85%. Given Stewart Information Services’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Stewart Information Services is more favorable than Primerica.

Insider & Institutional Ownership

96.9% of Stewart Information Services shares are held by institutional investors. Comparatively, 90.9% of Primerica shares are held by institutional investors. 2.9% of Stewart Information Services shares are held by insiders. Comparatively, 0.6% of Primerica shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Stewart Information Services pays an annual dividend of $2.20 per share and has a dividend yield of 5.3%. Primerica pays an annual dividend of $4.80 per share and has a dividend yield of 1.6%. Stewart Information Services pays out 55.1% of its earnings in the form of a dividend. Primerica pays out 19.0% 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. Stewart Information Services has raised its dividend for 4 consecutive years and Primerica has raised its dividend for 2 consecutive years. Stewart Information Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Stewart Information Services beats Primerica on 9 of the 17 factors compared between the two stocks.

About Stewart Information Services

Stewart Information Services Corporation is a Houston-based provider of title insurance and real estate transaction services. Its business includes issuing title insurance policies and supporting property transfers through services such as title searches, escrow, closing and settlement. The company serves homebuyers, sellers, real estate professionals, mortgage lenders and other participants in property transactions. It also provides related services, including property information and services supporting mortgage lending and real estate operations.

About Primerica

Primerica, Inc. provides financial products and services to middle-income households in the United States and Canada. Its core business is term life insurance, which it distributes through a network of representatives who work directly with clients. Through its investment and savings businesses, Primerica offers products and services including mutual funds, annuities, managed investment accounts, and retirement planning solutions. It also connects clients with certain third-party providers of products such as auto and homeowners insurance.