Fairfax Financial (OTCMKTS:FRFHF) versus Unipol Gruppo (OTCMKTS:UFGSY) Head-To-Head Comparison

Unipol Gruppo (OTCMKTS:UFGSY) and Fairfax Financial (OTCMKTS:FRFHF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

10.4% of Fairfax Financial shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Unipol Gruppo and Fairfax Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unipol Gruppo	N/A	N/A	N/A	C$0.05	371.00
Fairfax Financial	$31.59 billion	1.08	$4.77 billion	$204.10	8.03

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

Dividends

Unipol Gruppo pays an annual dividend of C$0.06 per share and has a dividend yield of 0.3%. Fairfax Financial pays an annual dividend of $15.00 per share and has a dividend yield of 0.9%. Unipol Gruppo pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Fairfax Financial pays out 7.3% of its earnings in the form of a dividend. Fairfax Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Unipol Gruppo and Fairfax Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unipol Gruppo	N/A	N/A	N/A
Fairfax Financial	13.83%	14.72%	4.16%

Analyst Ratings

This is a summary of current recommendations for Unipol Gruppo and Fairfax Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unipol Gruppo	0	0	0	0	0.00
Fairfax Financial	0	3	3	0	2.50

Summary

Fairfax Financial beats Unipol Gruppo on 10 of the 11 factors compared between the two stocks.

About Unipol Gruppo

Unipol Gruppo S.p.A., together with its subsidiaries, provides insurance products and services primarily in Italy. The company operates through Non-Life Insurance Business, Life Insurance Business, and Holding and Other Businesses segments. It offers risk cover solutions for vehicles, sports craft, and travel; home and condominiums; work related to businesses, traders, professionals, and legal protection; accident and health protection; and investments and welfare. The company also provides life insurance products; bancassurance; and reinsurance services. In addition, it is involved in the management of non-performing loans; operation and management of real estate properties; operation of hotels, residences, resorts, agricultural, nursing homes, healthcare facilities, and port facilities; provision of vehicle and glass repair services, mobile payments, telematics, and response services to assistance request; supplies anti-theft systems; and telemedicine, home care services, physiotherapy, and social care. Further, the company offers property services to homes and condominiums, and administrators and owners. The company was formerly known as Unipol Gruppo Finanziario S.p.A. and changed its name to Unipol Gruppo S.p.A. in June 2017. Unipol Gruppo S.p.A. was founded in 1961 and is based in Bologna, Italy.

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.