Head-To-Head Analysis: Kemper (NYSE:KMPR) & Fidelity National Financial (NYSE:FNF)

Fidelity National Financial (NYSE:FNF) and Kemper (NYSE:KMPR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Valuation & Earnings

This table compares Fidelity National Financial and Kemper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Financial	$14.14 billion	0.88	$602.00 million	$2.13	21.47
Kemper	$4.79 billion	0.38	$143.30 million	$2.19	13.98

Fidelity National Financial has higher revenue and earnings than Kemper. Kemper is trading at a lower price-to-earnings ratio than Fidelity National Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Fidelity National Financial and Kemper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Financial	4.17%	15.06%	1.30%
Kemper	2.99%	8.02%	1.80%

Volatility & Risk

Fidelity National Financial has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Kemper has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

81.2% of Fidelity National Financial shares are held by institutional investors. Comparatively, 86.2% of Kemper shares are held by institutional investors. 5.5% of Fidelity National Financial shares are held by insiders. Comparatively, 6.2% of Kemper shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Fidelity National Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.5%. Kemper pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Fidelity National Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kemper pays out 58.4% of its earnings in the form of a dividend. Fidelity National Financial has increased its dividend for 1 consecutive years and Kemper has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fidelity National Financial and Kemper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Financial	0	2	2	0	2.50
Kemper	4	3	1	0	1.63

Fidelity National Financial presently has a consensus price target of $68.33, indicating a potential upside of 49.43%. Kemper has a consensus price target of $56.50, indicating a potential upside of 84.51%. Given Kemper’s higher probable upside, analysts clearly believe Kemper is more favorable than Fidelity National Financial.

Summary

Fidelity National Financial beats Kemper on 9 of the 16 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 Kemper

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides preferred and specialty automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses. The company also offers life insurance, including permanent and term insurance; and supplemental accident and health insurance products, such as Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas. It distributes its products through independent agents and brokers. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.