Head to Head Analysis: Fidelity National Financial (FNFV) & MGIC Investment Corporation (MTG)
Fidelity National Financial (NYSE: FNFV) and MGIC Investment Corporation (NYSE:MTG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Volatility and Risk
Fidelity National Financial has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, MGIC Investment Corporation has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Fidelity National Financial and MGIC Investment Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity National Financial||0||1||0||0||2.00|
|MGIC Investment Corporation||0||1||8||0||2.89|
Fidelity National Financial presently has a consensus target price of $16.00, indicating a potential downside of 5.33%. MGIC Investment Corporation has a consensus target price of $11.78, indicating a potential upside of 3.95%. Given MGIC Investment Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe MGIC Investment Corporation is more favorable than Fidelity National Financial.
This table compares Fidelity National Financial and MGIC Investment Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity National Financial||6.75%||1.73%||0.83%|
|MGIC Investment Corporation||34.99%||16.56%||7.72%|
Insider and Institutional Ownership
85.0% of Fidelity National Financial shares are held by institutional investors. Comparatively, 86.6% of MGIC Investment Corporation shares are held by institutional investors. 5.4% of Fidelity National Financial shares are held by company insiders. Comparatively, 1.0% of MGIC Investment Corporation shares are held 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.
Valuation & Earnings
This table compares Fidelity National Financial and MGIC Investment Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fidelity National Financial||$1.32 billion||0.83||$34.00 million||$1.59||10.63|
|MGIC Investment Corporation||$1.06 billion||3.96||$801.94 million||$0.97||11.68|
MGIC Investment Corporation has higher revenue, but lower earnings than Fidelity National Financial. Fidelity National Financial is trading at a lower price-to-earnings ratio than MGIC Investment Corporation, indicating that it is currently the more affordable of the two stocks.
MGIC Investment Corporation beats Fidelity National Financial on 11 of the 14 factors compared between the two stocks.
Fidelity National Financial Company Profile
Fidelity National Financial, Inc. (FNF) is a holding company. The Company is a provider of title insurance, technology and transaction services to the real estate and mortgage industries. The Company’s segments include Title, Black Knight, FNF Core Corporate and Other, Restaurant Group, and FNFV Corporate and Other. Its business is organized into groups, including FNF Group and FNF Ventures (FNFV). The Company offers title insurance through its title insurance underwriters: Fidelity National Title Insurance Company, Chicago Title Insurance Company, Commonwealth Land Title Insurance Company, Alamo Title Insurance and National Title Insurance of New York Inc., which collectively issue title insurance policies. FNF Group also provides mortgage technology solutions, including MSP, a residential mortgage servicing technology platform in the United States, through its subsidiary, Black Knight Financial Services, Inc. (Black Knight).
MGIC Investment Corporation Company Profile
MGIC Investment Corporation is a holding company. The Company, through its subsidiaries, provides private mortgage insurance and ancillary services. The Company provides mortgage insurance to lenders throughout the United States and to government-sponsored entities to protect against loss from defaults on low down payment residential mortgage loans. Its principal product is primary mortgage insurance. Primary insurance provides mortgage default protection on individual loans and covers unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by the Company. Through certain other non-insurance subsidiaries, the Company also provides various services for the mortgage finance industry, such as contract underwriting, analysis of loan originations and portfolios, and mortgage lead generation. The Company’s subsidiaries include Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC).
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