CNA Financial Corporation (CNA) vs. Old Republic International Corporation (ORI) Head-To-Head Survey
Old Republic International Corporation (NYSE: ORI) and CNA Financial Corporation (NYSE:CNA) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Institutional & Insider Ownership
71.2% of Old Republic International Corporation shares are owned by institutional investors. Comparatively, 99.9% of CNA Financial Corporation shares are owned by institutional investors. 2.3% of Old Republic International Corporation shares are owned by company insiders. Comparatively, 0.5% of CNA Financial Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Old Republic International Corporation and CNA Financial Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Republic International Corporation||6.45%||7.50%||1.81%|
|CNA Financial Corporation||9.67%||7.14%||1.53%|
This is a summary of current ratings and target prices for Old Republic International Corporation and CNA Financial Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Republic International Corporation||0||0||0||1||4.00|
|CNA Financial Corporation||0||3||0||0||2.00|
CNA Financial Corporation has a consensus target price of $46.67, suggesting a potential downside of 14.34%. Given Old Republic International Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Old Republic International Corporation is more favorable than CNA Financial Corporation.
Earnings & Valuation
This table compares Old Republic International Corporation and CNA Financial Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Old Republic International Corporation||$5,900.50||0.91||$467.00||$1.37||14.86|
|CNA Financial Corporation||$9,366.00||1.58||$859.00||$3.38||16.12|
CNA Financial Corporation has higher revenue and earnings than Old Republic International Corporation. Old Republic International Corporation is trading at a lower price-to-earnings ratio than CNA Financial Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Old Republic International Corporation has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, CNA Financial Corporation has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Old Republic International Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. CNA Financial Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Old Republic International Corporation pays out 55.5% of its earnings in the form of a dividend. CNA Financial Corporation pays out 35.5% 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. Old Republic International Corporation has raised its dividend for 35 consecutive years. Old Republic International Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Old Republic International Corporation beats CNA Financial Corporation on 9 of the 17 factors compared between the two stocks.
About Old Republic International Corporation
Old Republic International Corporation is a holding company. The Company is engaged in business of insurance underwriting and related services. The Company conducts its operations through various regulated insurance company subsidiaries, which are organized into three segments: General Insurance Group, Title Insurance Group and the Republic Financial Indemnity Group (RFIG) Run-off Business. The Company’s General Insurance segment consists of property and liability insurance, and offers coverages to businesses, government and other institutions. The Company’s Title Insurance Group business consists of the issuance of policies to real estate purchasers and investors based upon searches of the public records, which contain information concerning interests in real property. The Company’s RFIG run-off business consists of its mortgage guaranty and consumer credit indemnity (CCI) operations.
About CNA Financial Corporation
CNA Financial Corporation is an insurance holding company. The Company’s segments include Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core. Its Specialty segment provides a range of professional, financial, and specialty property, and casualty products and services. The Commercial segment includes property and casualty insurance products and services to small, middle-market and large businesses. Its International segment provides management and professional liability coverages, as well as a range of other property and casualty insurance products and services. The Life & Group Non-Core segment primarily includes the results of its individual and group long term care businesses that are in run-off. Its Corporate & Other Non-Core segment primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business in run-off.
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