AIFU (NASDAQ:AIFU – Get Free Report) and Old Republic International (NYSE:ORI – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
AIFU has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Profitability
This table compares AIFU and Old Republic International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AIFU | N/A | N/A | N/A |
| Old Republic International | 10.24% | 16.21% | 3.38% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AIFU | $247.81 million | 0.02 | $62.33 million | $14.60 | 0.12 |
| Old Republic International | $9.14 billion | 1.14 | $935.40 million | $3.39 | 12.38 |
Old Republic International has higher revenue and earnings than AIFU. AIFU is trading at a lower price-to-earnings ratio than Old Republic International, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
26.7% of AIFU shares are owned by institutional investors. Comparatively, 70.9% of Old Republic International shares are owned by institutional investors. 25.6% of AIFU shares are owned by insiders. Comparatively, 1.1% of Old Republic International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for AIFU and Old Republic International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AIFU | 1 | 0 | 0 | 0 | 1.00 |
| Old Republic International | 1 | 1 | 0 | 2 | 2.75 |
Old Republic International has a consensus price target of $42.50, indicating a potential upside of 1.27%. Given Old Republic International’s stronger consensus rating and higher probable upside, analysts clearly believe Old Republic International is more favorable than AIFU.
Summary
Old Republic International beats AIFU on 12 of the 14 factors compared between the two stocks.
About AIFU
AIX, Inc. engages in the provision of agency services and insurance claims adjusting services. It operates through the Insurance Agency and Claims Adjusting segments. The Insurance Agency segment includes providing agency services for insurance products and life insurance products. The Claims Adjusting segment provides pre-underwriting survey services, claims adjusting services, disposal of residual value services, loading and unloading supervision services, and consulting services. The company was founded by Yin An Hu and Qiu Ping Lai in 1998 and is headquartered in Guangzhou, China.
About Old Republic International
Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.
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