Analyzing Fidelity National Financial (NYSE:FNF) and Yuanbao (NASDAQ:YB)

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

Insider & Institutional Ownership

81.2% of Fidelity National Financial shares are held by institutional investors. 5.7% of Fidelity National Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments 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 5.2%. Yuanbao pays an annual dividend of $1.24 per share and has a dividend yield of 10.2%. Fidelity National Financial pays out 73.5% of its earnings in the form of a dividend. Yuanbao pays out 27.6% 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. Fidelity National Financial has increased its dividend for 1 consecutive years. Yuanbao is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Fidelity National Financial and Yuanbao, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Financial	0	3	2	0	2.40
Yuanbao	0	2	0	0	2.00

Fidelity National Financial presently has a consensus target price of $54.25, suggesting a potential upside of 36.71%. Yuanbao has a consensus target price of $21.80, suggesting a potential upside of 78.91%. Given Yuanbao’s higher probable upside, analysts plainly believe Yuanbao is more favorable than Fidelity National Financial.

Valuation and Earnings

This table compares Fidelity National Financial and Yuanbao”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Financial	$14.45 billion	0.74	$602.00 million	$2.83	14.02
Yuanbao	$625.35 million	0.88	$181.88 million	$4.50	2.71

Fidelity National Financial has higher revenue and earnings than Yuanbao. Yuanbao 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 Yuanbao’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Financial	5.03%	16.07%	1.30%
Yuanbao	29.91%	43.75%	29.78%

Risk and Volatility

Fidelity National Financial has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Yuanbao has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Fidelity National Financial beats Yuanbao on 9 of the 17 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 Yuanbao

Our mission is to protect health and well-being through technology. We are a leading technology-driven online insurance distributor in China. We take pride in pioneering the seamless integration of insurance with cutting-edge technologies, and have constructed a highly efficient full consumer service cycle engine. Through this engine, we successfully distribute suitable and high-quality insurance products to over ten million insurance consumers. According to Frost & Sullivan, we were the largest independent insurance distributor in China’s personal life and accident & health (A&H) insurance market in terms of first year premiums in 2023. Our engine enables us to provide customized services for each insurance consumer across personalized recommendation, purchasing, policy management, claim settlements and post-sales services. Built upon a scalable architecture, our engine is equipped with effective predictive capabilities generated from interconnected networks of models. This allows us to continually optimize model outcomes across different media channels, diverse consumer preferences and product depth and breadth. As of December 31, 2024, we had approximately 4,700 models supporting our operations. Our engine offers significant value propositions for insurance consumers and insurance carriers. We act as a unique and efficient gateway to distribute customized insurance products underwritten by our partnered insurance carriers. We have robust collaboration with insurance carriers by empowering them to tailor a variety of flagship insurance products, which in turn enables us to attract and retain a vast consumer base and stimulate their demand for insurance products. By accumulating and analyzing more big data, we gain deeper and wider understanding of consumer demands and behavior. Through all this, we are able to fulfill consumers’ evolving needs and enhance insurance carriers’ sales at the same time. We believe there is substantial untapped market potential for online insurance distribution. According to Frost & Sullivan, the penetration rate of online insurance sales still lags behind the penetration rate of online retail sales. Moreover, the penetration rate of online distribution for personal life and A&H insurance in China, in terms of gross written premium (“GWP”), is anticipated to double over the next five years. Driven by our engine and our market leading position, we are well-positioned to further penetrate this rapidly growing market. Our principal executive offices are located in Beijing, the People’s Republic of China.