Critical Analysis: Cannae (CNNE) and Its Rivals

Cannae (NYSE:CNNE) is one of 341 public companies in the “Financial Services” industry, but how does it contrast to its competitors? We will compare Cannae to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Valuation & Earnings

This table compares Cannae and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cannae	$423.60 million	-$513.20 million	-5.60
Cannae Competitors	$6.73 billion	$1.10 billion	9.81

Cannae’s competitors have higher revenue and earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations for Cannae and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	1	0	2	0	2.33
Cannae Competitors	1996	6954	11732	446	2.50

Cannae presently has a consensus price target of $17.00, suggesting a potential upside of 0.44%. As a group, “Financial Services” companies have a potential downside of 7.65%. Given Cannae’s higher possible upside, analysts plainly believe Cannae is more favorable than its competitors.

Dividends

Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Cannae pays out -19.9% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.1% and pay out -92.4% of their earnings in the form of a dividend. Cannae lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Cannae has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Cannae’s competitors have a beta of 2.51, meaning that their average share price is 151% more volatile than the S&P 500.

Profitability

This table compares Cannae and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-38.18%	-14.10%	-10.60%
Cannae Competitors	-412.58%	-39.71%	-5.80%

Institutional and Insider Ownership

88.1% of Cannae shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are owned by institutional investors. 16.7% of Cannae shares are owned by company insiders. Comparatively, 22.0% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Cannae competitors beat Cannae on 10 of the 15 factors compared.

Cannae Company Profile

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.