Seibels Bruce Group (OTCMKTS:SBBG) vs. First American Financial (NYSE:FAF) Financial Comparison

Seibels Bruce Group (OTCMKTS:SBBG) and First American Financial (NYSE:FAF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

89.1% of First American Financial shares are owned by institutional investors. 55.4% of Seibels Bruce Group shares are owned by company insiders. Comparatively, 3.7% of First American Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Seibels Bruce Group has a beta of 3.8, indicating that its stock price is 280% more volatile than the S&P 500. Comparatively, First American Financial has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Seibels Bruce Group and First American Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seibels Bruce Group	0	0	0	0	0.00
First American Financial	1	0	4	0	2.60

First American Financial has a consensus price target of $76.00, indicating a potential upside of 21.18%. Given First American Financial’s stronger consensus rating and higher possible upside, analysts plainly believe First American Financial is more favorable than Seibels Bruce Group.

Earnings & Valuation

This table compares Seibels Bruce Group and First American Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seibels Bruce Group	N/A	N/A	N/A	N/A	N/A
First American Financial	$7.08 billion	0.90	$131.10 million	$4.65	13.49

First American Financial has higher revenue and earnings than Seibels Bruce Group.

Profitability

This table compares Seibels Bruce Group and First American Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seibels Bruce Group	N/A	N/A	N/A
First American Financial	6.80%	11.01%	3.50%

Dividends

Seibels Bruce Group pays an annual dividend of $150.00 per share. First American Financial pays an annual dividend of $2.20 per share and has a dividend yield of 3.5%. First American Financial pays out 47.3% of its earnings in the form of a dividend. First American Financial has increased its dividend for 15 consecutive years. First American Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First American Financial beats Seibels Bruce Group on 10 of the 13 factors compared between the two stocks.

About Seibels Bruce Group

The Seibels Bruce Group, Inc. provides processing, technology, and claims solutions to the property and casualty insurance industry. The company offers processing solutions for coastal markets; business process outsourcing; claims administration solutions; information technology outsourcing; and professional services. It also provides technology solutions, such as IPX enterprise insurance suite, CPX claims management system, FNOL first notice of loss, and reinspection processing xpert solutions; and claims solutions, including third party administration, catastrophe management, first notice of loss, multi-line adjusting and examination, reinspection, and subrogation/salvage services. The company was founded in 1869 and is based in Columbia, South Carolina.

About First American Financial

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, document generation services, mortgage loans subservicing, and related products and services, as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in various states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Home Warranty segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and various appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in various states and the District of Columbia. The company was founded in 1889 and is headquartered in Santa Ana, California.