FFH vs. IFC, NA, GWO, SLF, POW, BAM, X, IAG, MFC, and CM
Should you be buying Fairfax Financial stock or one of its competitors? The main competitors of Fairfax Financial include Intact Financial (IFC), National Bank of Canada (NA), Great-West Lifeco (GWO), Sun Life Financial (SLF), Power Co. of Canada (POW), Brookfield Asset Management (BAM), TMX Group (X), iA Financial (IAG), Manulife Financial (MFC), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "financial services" sector.
Intact Financial (TSE:IFC) and Fairfax Financial (TSE:FFH) are both large-cap financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, earnings, profitability, analyst recommendations, valuation, institutional ownership, media sentiment, dividends and risk.
Intact Financial has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Fairfax Financial has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
54.8% of Intact Financial shares are held by institutional investors. Comparatively, 33.6% of Fairfax Financial shares are held by institutional investors. 0.2% of Intact Financial shares are held by insiders. Comparatively, 3.7% of Fairfax Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Fairfax Financial has a net margin of 12.26% compared to Fairfax Financial's net margin of 4.59%. Intact Financial's return on equity of 17.26% beat Fairfax Financial's return on equity.
Intact Financial received 229 more outperform votes than Fairfax Financial when rated by MarketBeat users. Likewise, 69.12% of users gave Intact Financial an outperform vote while only 63.35% of users gave Fairfax Financial an outperform vote.
Fairfax Financial has higher revenue and earnings than Intact Financial. Fairfax 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.
In the previous week, Fairfax Financial had 5 more articles in the media than Intact Financial. MarketBeat recorded 32 mentions for Fairfax Financial and 27 mentions for Intact Financial. Fairfax Financial's average media sentiment score of 1.22 beat Intact Financial's score of 0.18 indicating that Intact Financial is being referred to more favorably in the media.
Intact Financial pays an annual dividend of C$4.84 per share and has a dividend yield of 2.1%. Fairfax Financial pays an annual dividend of C$20.29 per share and has a dividend yield of 1.3%. Intact Financial pays out 69.1% of its earnings in the form of a dividend. Fairfax Financial pays out 9.6% 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.
Intact Financial currently has a consensus target price of C$245.00, indicating a potential upside of 5.39%. Fairfax Financial has a consensus target price of C$1,820.83, indicating a potential upside of 17.30%. Given Intact Financial's stronger consensus rating and higher possible upside, analysts clearly believe Fairfax Financial is more favorable than Intact Financial.
Summary
Fairfax Financial beats Intact Financial on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FFH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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