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Analyzing Fidelity National Financial (FNF) and Ambac Financial Group (NASDAQ:AMBC)
Fidelity National Financial (NYSE: FNF) and Ambac Financial Group (NASDAQ:AMBC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitabiliy.
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Dividends
Fidelity National Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Ambac Financial Group does not pay a dividend. Fidelity National Financial pays out 42.9% of its earnings in the form of a dividend. Ambac Financial Group has increased its dividend for 5 consecutive years.
Volatility & Risk
Fidelity National Financial has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Ambac Financial Group has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
Earnings & Valuation
This table compares Fidelity National Financial and Ambac Financial Group’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Fidelity National Financial | $9.74 billion | 1.29 | $1.60 billion | $2.33 | 19.78 |
| Ambac Financial Group | $576.89 million | 1.41 | $234.44 million | ($1.35) | -13.29 |
Fidelity National Financial has higher revenue and earnings than Ambac Financial Group. Ambac Financial Group 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.
Insider & Institutional Ownership
84.2% of Fidelity National Financial shares are owned by institutional investors. Comparatively, 74.1% of Ambac Financial Group shares are owned by institutional investors. 5.0% of Fidelity National Financial shares are owned by insiders. Comparatively, 1.0% of Ambac Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Fidelity National Financial and Ambac Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelity National Financial | 7.34% | 10.51% | 4.98% |
| Ambac Financial Group | -9.76% | 7.90% | 0.69% |
Analyst Recommendations
This is a summary of current recommendations for Fidelity National Financial and Ambac Financial Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelity National Financial | 0 | 1 | 3 | 0 | 2.75 |
| Ambac Financial Group | 0 | 1 | 1 | 0 | 2.50 |
Fidelity National Financial presently has a consensus price target of $45.00, indicating a potential downside of 2.34%. Ambac Financial Group has a consensus price target of $21.50, indicating a potential upside of 19.84%. Given Ambac Financial Group’s higher possible upside, analysts clearly believe Ambac Financial Group is more favorable than Fidelity National Financial.
Summary
Fidelity National Financial beats Ambac Financial Group on 12 of the 17 factors compared between the two stocks.
About Fidelity National Financial