FFH vs. IFC, DFY, KFS, BMO, BN, BNS, MFC, CM, SLF, and GWO
Should you be buying Fairfax Financial stock or one of its competitors? The main competitors of Fairfax Financial include Intact Financial (IFC), Definity Financial (DFY), Kingsway Financial Services Inc. (KFS.TO) (KFS), Bank of Montreal (BMO), Brookfield (BN), Bank of Nova Scotia (BNS), Manulife Financial (MFC), Canadian Imperial Bank of Commerce (CM), Sun Life Financial (SLF), and Great-West Lifeco (GWO).
Fairfax Financial (TSE:FFH) and Intact Financial (TSE:IFC) are both large-cap financial services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, community ranking, profitability, earnings, dividends, institutional ownership, media sentiment, analyst recommendations and risk.
33.7% of Fairfax Financial shares are held by institutional investors. Comparatively, 54.4% 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Fairfax Financial currently has a consensus target price of C$1,820.83, indicating a potential upside of 18.67%. Intact Financial has a consensus target price of C$247.30, indicating a potential upside of 8.45%. Given Fairfax Financial's stronger consensus rating and higher probable upside, equities analysts plainly 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 5.55%. Fairfax Financial's return on equity of 17.26% beat Intact Financial's return on equity.
In the previous week, Fairfax Financial had 3 more articles in the media than Intact Financial. MarketBeat recorded 5 mentions for Fairfax Financial and 2 mentions for Intact Financial. Intact Financial's average media sentiment score of 0.92 beat Fairfax Financial's score of 0.14 indicating that Intact Financial is being referred to more favorably in the news media.
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 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 56.2% 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 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.
Fairfax Financial has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Intact Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
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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