Contrasting Fidelity National Financial (FNF) and Investors Title (ITIC)

Fidelity National Financial (NYSE: FNF) and Investors Title (NASDAQ:ITIC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Valuation and Earnings

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This table compares Fidelity National Financial and Investors Title’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidelity National Financial $7.26 billion 1.46 $771.00 million $2.27 17.00
Investors Title $161.65 million 2.28 $25.70 million N/A N/A

Fidelity National Financial has higher revenue and earnings than Investors Title.

Analyst Ratings

This is a summary of recent ratings and target prices for Fidelity National Financial and Investors Title, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidelity National Financial 0 1 5 0 2.83
Investors Title 0 0 0 0 N/A

Fidelity National Financial presently has a consensus target price of $44.00, suggesting a potential upside of 13.99%. Given Fidelity National Financial’s higher possible upside, research analysts clearly believe Fidelity National Financial is more favorable than Investors Title.

Insider and Institutional Ownership

83.0% of Fidelity National Financial shares are owned by institutional investors. Comparatively, 42.1% of Investors Title shares are owned by institutional investors. 5.0% of Fidelity National Financial shares are owned by insiders. Comparatively, 27.5% of Investors Title shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Fidelity National Financial has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Investors Title has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Fidelity National Financial 8.13% 11.71% 5.76%
Investors Title 15.90% 12.06% 8.39%

Dividends

Fidelity National Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. Investors Title pays an annual dividend of $1.60 per share and has a dividend yield of 0.8%. Fidelity National Financial pays out 52.9% of its earnings in the form of a dividend. Fidelity National Financial has raised its dividend for 6 consecutive years. Fidelity National Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Fidelity National Financial beats Investors Title on 8 of the 15 factors compared between the two stocks.

Fidelity National Financial Company Profile

Fidelity National Financial, Inc., together with its subsidiaries, provides title insurance, technology, and transaction services to the real estate and mortgage industries in the United States. The company operates in Title, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including collection and trust activities, trustee sales guarantees, recordings and conveyances, and home warranty insurance. The company also offers other title related services used in the production and management of mortgage loans. In addition, it engages in real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.

Investors Title Company Profile

Investors Title Company is an insurance holding company. The Company, through its subsidiaries, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC), is engaged in issuance of residential and commercial title insurance, Investors Title Insurance Company (ITIC) and National Investors Title Insurance Company (NITIC). The Company also provides tax-deferred real property exchange services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and Investors Title Accommodation Corporation (ITAC); investment management and trust services to individuals, trusts and other entities through its subsidiary, Investors Trust Company (Investors Trust), and management services to title insurance agencies through its subsidiary, Investors Title Management Services (ITMS). In addition, the Company operates in the issuance of residential and commercial title insurance through ITIC and NITIC segment.

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