Fairfax Financial (FRFHF) vs. Its Competitors Head-To-Head Analysis

Fairfax Financial (OTCMKTS:FRFHF) is one of 311 public companies in the “Insurance” industry, but how does it contrast to its rivals? We will compare Fairfax Financial to related companies based on the strength of its institutional ownership, profitability, earnings, valuation, analyst recommendations, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and target prices for Fairfax Financial and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fairfax Financial	1	2	1	0	2.00
Fairfax Financial Competitors	3321	15619	16447	737	2.40

As a group, “Insurance” companies have a potential upside of 6.39%. Given Fairfax Financial’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Fairfax Financial has less favorable growth aspects than its rivals.

Dividends

Fairfax Financial pays an annual dividend of $15.00 per share and has a dividend yield of 0.8%. Fairfax Financial pays out 7.3% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

10.4% of Fairfax Financial shares are owned by institutional investors. Comparatively, 55.9% of shares of all “Insurance” companies are owned by institutional investors. 13.6% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Fairfax Financial has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Fairfax Financial’s rivals have a beta of -1.54, suggesting that their average stock price is 254% less volatile than the S&P 500.

Profitability

This table compares Fairfax Financial and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fairfax Financial	13.83%	14.72%	4.16%
Fairfax Financial Competitors	9.24%	-9.74%	4.23%

Earnings and Valuation

This table compares Fairfax Financial and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fairfax Financial	$31.59 billion	$4.77 billion	8.78
Fairfax Financial Competitors	$15.63 billion	$1.70 billion	34.44

Fairfax Financial has higher revenue and earnings than its rivals. Fairfax Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Fairfax Financial rivals beat Fairfax Financial on 9 of the 15 factors compared.

About Fairfax Financial

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company operates through Property and Casualty Insurance and Reinsurance, Life insurance and Run-off, and Non-Insurance Companies segments. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, terrorism, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, automobile, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products. In addition, it franchises, owns, and operates restaurants; retails sports lifestyle products; provides integrated travel and travel-related financial services, as well as advanced digital tools for agriculture; owns and operates holiday resorts; originates, processes, and distributes value-added pulses and staple foods; develops, manages, and invests in hospitality real estate. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.