Reviewing Fairfax Financial (OTCMKTS:FRFHF) and Vienna Insurance Group (OTCMKTS:VNRFY)

Vienna Insurance Group (OTCMKTS:VNRFY) and Fairfax Financial (OTCMKTS:FRFHF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Vienna Insurance Group and Fairfax Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vienna Insurance Group	N/A	N/A	N/A
Fairfax Financial	13.83%	14.72%	4.16%

Institutional & Insider Ownership

10.4% of Fairfax Financial shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Vienna Insurance Group and Fairfax Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vienna Insurance Group	N/A	N/A	N/A	$0.57	27.95
Fairfax Financial	$31.59 billion	1.09	$4.77 billion	$204.10	8.10

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Vienna Insurance Group and Fairfax Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vienna Insurance Group	0	0	0	0	0.00
Fairfax Financial	0	3	3	0	2.50

Dividends

Vienna Insurance Group pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. Fairfax Financial pays an annual dividend of $15.00 per share and has a dividend yield of 0.9%. Vienna Insurance Group pays out 31.2% of its earnings in the form of a dividend. Fairfax Financial pays out 7.3% 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.

Summary

Fairfax Financial beats Vienna Insurance Group on 9 of the 11 factors compared between the two stocks.

About Vienna Insurance Group

Vienna Insurance Group AG, together with its subsidiaries, provides various insurance products and services in life, health, and property and casualty areas in Austria and internationally. The company offers motor own damage, rail vehicle own damage, aircraft own damage, transport, fire and natural hazards, third party liability, carrier, aircraft liability, general liability, credit, guarantee, legal expenses, assistance, marine, aviation, and travel health insurance products, as well as sea, lake, and river shipping own damage and liability insurance products. It also offers reinsurance products and services. The company sells its products through sales employees, banks, brokers, and agents. Vienna Insurance Group AG was founded in 1824 and is headquartered in Vienna, Austria. Vienna Insurance Group AG operates as a subsidiary of Wiener Städtische Wechselseitige Versicherungsverein – Vermögensverwaltung – Vienna Insurance Group.

About Fairfax Financial

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life insurance and Run-off, and Non-Insurance Companies segments. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, terrorism, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, automobile, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products. In addition, it franchises, owns, and operates restaurants; retails sports lifestyle products; provides integrated travel and travel-related financial services, as well as advanced digital tools for agriculture; owns and operates holiday resorts; originates, processes, and distributes value-added pulses and staple foods; develops, manages, and invests in hospitality real estate. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.