Analyzing Tiptree Financial (NASDAQ:TIPT) & Fidelity National Financial (NYSE:FNF)

Fidelity National Financial (NYSE:FNF) and Tiptree Financial (NASDAQ:TIPT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Dividends

Fidelity National Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.5%. Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Fidelity National Financial pays out 73.5% of its earnings in the form of a dividend. Tiptree Financial pays out 2.2% 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. Fidelity National Financial has increased its dividend for 1 consecutive years and Tiptree Financial has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Fidelity National Financial and Tiptree Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Financial	$14.45 billion	0.85	$602.00 million	$2.83	16.16
Tiptree Financial	$490,000.00	1,405.24	$34.93 million	$10.81	1.71

Fidelity National Financial has higher revenue and earnings than Tiptree Financial. Tiptree Financial is trading at a lower price-to-earnings ratio than Fidelity National Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Fidelity National Financial and Tiptree Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Financial	0	3	2	0	2.40
Tiptree Financial	0	1	0	0	2.00

Fidelity National Financial currently has a consensus target price of $56.00, suggesting a potential upside of 22.46%. Given Fidelity National Financial’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fidelity National Financial is more favorable than Tiptree Financial.

Profitability

This table compares Fidelity National Financial and Tiptree Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelity National Financial	5.03%	16.07%	1.30%
Tiptree Financial	2.36%	0.75%	0.11%

Risk and Volatility

Fidelity National Financial has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Tiptree Financial has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

81.2% of Fidelity National Financial shares are owned by institutional investors. Comparatively, 37.8% of Tiptree Financial shares are owned by institutional investors. 5.7% of Fidelity National Financial shares are owned by company insiders. Comparatively, 31.9% of Tiptree Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Fidelity National Financial beats Tiptree Financial on 11 of the 16 factors compared between the two stocks.

About Fidelity National Financial

Fidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred and immediate annuities, as well as indexed universal life insurance products; and funding agreements and pension risk transfer (PRT) solutions. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was incorporated in 2005 and is headquartered in Jacksonville, Florida.

About Tiptree Financial

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.