Prudential Financial (NYSE:PRU) versus Fidelity National Financial (NYSE:FNF) Head-To-Head Analysis

Fidelity National Financial (NYSE:FNF) and Prudential Financial (NYSE:PRU) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Volatility and Risk

Fidelity National Financial has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Prudential Financial has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Earnings and Valuation

This table compares Fidelity National Financial and Prudential Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelity National Financial	$14.45 billion	0.86	$602.00 million	$2.13	21.47
Prudential Financial	$60.97 billion	0.56	$3.58 billion	$10.00	9.77

Prudential Financial has higher revenue and earnings than Fidelity National Financial. Prudential 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fidelity National Financial	4.17%	15.06%	1.30%
Prudential Financial	6.20%	16.32%	0.68%

Institutional & Insider Ownership

81.2% of Fidelity National Financial shares are held by institutional investors. Comparatively, 56.8% of Prudential Financial shares are held by institutional investors. 5.5% of Fidelity National Financial shares are held by insiders. Comparatively, 0.3% of Prudential Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Fidelity National Financial pays an annual dividend of $2.08 per share and has a dividend yield of 4.5%. Prudential Financial pays an annual dividend of $5.60 per share and has a dividend yield of 5.7%. Fidelity National Financial pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prudential Financial pays out 56.0% of its earnings in the form of a dividend. Fidelity National Financial has raised its dividend for 1 consecutive years and Prudential Financial has raised its dividend for 2 consecutive years. Prudential Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Fidelity National Financial and Prudential Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelity National Financial	0	2	2	0	2.50
Prudential Financial	2	9	0	0	1.82

Fidelity National Financial presently has a consensus price target of $68.33, indicating a potential upside of 49.43%. Prudential Financial has a consensus price target of $113.89, indicating a potential upside of 16.59%. Given Fidelity National Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Fidelity National Financial is more favorable than Prudential Financial.

Summary

Fidelity National Financial beats Prudential Financial on 9 of the 17 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 Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.