FFH vs. IFC, NA, GWO, SLF, POW, BAM, X, MFC, IGM, 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), Manulife Financial (MFC), IGM Financial (IGM), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "financial services" sector.
Fairfax Financial (TSE:FFH) and Intact Financial (TSE:IFC) are both large-cap financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability, analyst recommendations, community ranking and media sentiment.
Fairfax Financial pays an annual dividend of C$20.29 per share and has a dividend yield of 1.3%. Intact Financial pays an annual dividend of C$4.84 per share and has a dividend yield of 2.1%. Fairfax Financial pays out 9.6% of its earnings in the form of a dividend. Intact Financial pays out 69.1% 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.
33.6% of Fairfax Financial shares are held by institutional investors. Comparatively, 54.8% of Intact Financial shares are held by institutional investors. 3.7% of Fairfax Financial shares are held by insiders. Comparatively, 0.2% of Intact Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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.
Fairfax Financial currently has a consensus target price of C$1,820.83, suggesting a potential upside of 17.39%. Intact Financial has a consensus target price of C$247.30, suggesting a potential upside of 7.69%. Given Fairfax Financial's stronger consensus rating and higher possible upside, equities research analysts clearly believe Fairfax Financial is more favorable than Intact Financial.
Fairfax Financial has a net margin of 12.26% compared to Intact Financial's net margin of 4.59%. Fairfax Financial's return on equity of 17.26% beat Intact Financial's return on equity.
Intact Financial received 229 more outperform votes than Fairfax Financial when rated by MarketBeat users. Likewise, 68.81% of users gave Intact Financial an outperform vote while only 63.35% of users gave Fairfax Financial an outperform vote.
In the previous week, Intact Financial had 5 more articles in the media than Fairfax Financial. MarketBeat recorded 11 mentions for Intact Financial and 6 mentions for Fairfax Financial. Intact Financial's average media sentiment score of 0.51 beat Fairfax Financial's score of 0.11 indicating that Intact Financial is being referred to more favorably in the news media.
Fairfax Financial has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Intact Financial has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Summary
Fairfax Financial beats Intact Financial on 11 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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