Fairfax Financial Holdings Ltd Subordinate Voting Shares (OTCMKTS:FRFHF) and Cna Financial (NYSE:CNA) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
This table compares Fairfax Financial Holdings Ltd Subordinate Voting Shares and Cna Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fairfax Financial Holdings Ltd Subordinate Voting Shares||9.12%||7.91%||2.09%|
Fairfax Financial Holdings Ltd Subordinate Voting Shares pays an annual dividend of $10.00 per share and has a dividend yield of 2.1%. Cna Financial pays an annual dividend of $1.40 per share and has a dividend yield of 3.2%. Cna Financial pays out 41.4% of its earnings in the form of a dividend. Cna Financial has increased its dividend for 2 consecutive years. Cna Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Fairfax Financial Holdings Ltd Subordinate Voting Shares and Cna Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fairfax Financial Holdings Ltd Subordinate Voting Shares||$16.22 billion||0.82||$1.74 billion||N/A||N/A|
|Cna Financial||$9.54 billion||1.25||$899.00 million||$3.38||12.96|
Fairfax Financial Holdings Ltd Subordinate Voting Shares has higher revenue and earnings than Cna Financial.
Institutional and Insider Ownership
0.9% of Fairfax Financial Holdings Ltd Subordinate Voting Shares shares are owned by institutional investors. Comparatively, 99.6% of Cna Financial shares are owned by institutional investors. 0.2% of Cna Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Fairfax Financial Holdings Ltd Subordinate Voting Shares and Cna Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fairfax Financial Holdings Ltd Subordinate Voting Shares||0||0||1||0||3.00|
Volatility & Risk
Fairfax Financial Holdings Ltd Subordinate Voting Shares has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Cna Financial has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Cna Financial beats Fairfax Financial Holdings Ltd Subordinate Voting Shares on 9 of the 14 factors compared between the two stocks.
About Fairfax Financial Holdings Ltd Subordinate Voting Shares
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 also underwrites specialty insurance and reinsurance; develops, produces, markets, and distributes television programs; and franchises, owns, and operates dining restaurants and holiday resorts. In addition, it is involved in the provision of pet medical insurance and database services; retail of tableware and gifts, and home improvement goods, as well as sporting goods and sports apparel comprising golf equipment, consumables, and athletic apparel and accessories; investment of real estate; and provision of integrated travel and travel-related financial services. 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 founded in 1951 and is headquartered in Toronto, Canada.
About Cna Financial
CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company's property insurance products include property, marine, boiler, and machinery coverages; and casualty insurance products comprise workers compensation, general and product liability, commercial auto, and umbrella coverages. It also offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages to various professional firms, including architects, real estate agents, and accounting and law firms; surety and fidelity bonds, and warranty and alternative risks products; directors and officers, employment practices, fiduciary and fidelity coverages to small and mid-size firms, public and private firms, and not-for-profit organizations; and professional and general liability, as well as associated standard property and casualty coverages for healthcare industry. In addition, the company offers long-tail exposures, including commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures comprising property, commercial automobile physical damage, marine, surety, and warranty. CNA Financial Corporation markets its products through independent agents, brokers, and general underwriters to customers, including small, medium, and large businesses; insurance companies; associations; professionals; and other groups. It serves marine, property, financial services, healthcare, technology, oil and gas, construction, manufacturing, and life science industries. The company was founded in 1853 and is headquartered in Chicago, Illinois.
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