Critical Analysis: Fidelity National Financial (NYSE:FNF) vs. Intact Financial (OTCMKTS:IFCZF)

Intact Financial (OTCMKTS:IFCZF) and Fidelity National Financial (NYSE:FNF) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider and Institutional Ownership

81.2% of Fidelity National Financial shares are owned by institutional investors. 5.7% of Fidelity National Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intact Financial	10.35%	15.76%	4.81%
Fidelity National Financial	7.02%	15.39%	1.20%

Dividends

Intact Financial pays an annual dividend of $4.24 per share and has a dividend yield of 2.1%. Fidelity National Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.8%. Intact Financial pays out 36.1% of its earnings in the form of a dividend. Fidelity National Financial pays out 53.1% 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 raised its dividend for 1 consecutive years. Fidelity National Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Intact Financial and Fidelity National Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intact Financial	0	2	3	0	2.60
Fidelity National Financial	1	2	3	0	2.33

Fidelity National Financial has a consensus price target of $53.40, indicating a potential upside of 22.83%. Given Fidelity National Financial’s higher possible upside, analysts clearly believe Fidelity National Financial is more favorable than Intact Financial.

Earnings and Valuation

This table compares Intact Financial and Fidelity National Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intact Financial	$20.46 billion	1.69	$2.41 billion	$11.75	16.79
Fidelity National Financial	$14.45 billion	0.81	$602.00 million	$3.92	11.09

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

Summary

Intact Financial beats Fidelity National Financial on 10 of the 15 factors compared between the two stocks.

About Intact Financial

Intact Financial Corporation is a Canadian property and casualty insurance company that provides coverage to individuals, businesses and organizations. Its products include automobile, home, commercial and specialty insurance, offered through insurance brokers and direct-to-customer channels. Headquartered in Toronto, Intact serves customers in Canada and has an international presence, including in the United Kingdom, Ireland and other European markets. Its international operations expanded significantly with its acquisition of RSA Insurance Group in 2021.

About Fidelity National Financial

Fidelity National Financial, Inc. (NYSE: FNF) is a provider of title insurance and related services for real estate transactions. Through its title operations, the company offers title searches and insurance, escrow and closing services, and other support for buyers, sellers, lenders, and real estate professionals. FNF also provides annuity and life insurance products through its F&G business. These offerings include fixed and fixed-indexed annuities and life insurance designed to help individuals and institutions address retirement and financial-protection needs.