Contrasting Fidelity National Financial (NYSE:FNF) and SelectQuote (NYSE:SLQT)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.53 billion	0.09	$47.58 million	$0.09	8.78
Fidelity National Financial	$14.45 billion	0.88	$602.00 million	$2.83	16.76

Fidelity National Financial has higher revenue and earnings than SelectQuote. SelectQuote 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 SelectQuote and Fidelity National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SelectQuote	5.60%	20.49%	5.58%
Fidelity National Financial	5.03%	16.07%	1.30%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SelectQuote and Fidelity National Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	2	0	1	2.25
Fidelity National Financial	1	2	2	0	2.20

SelectQuote currently has a consensus target price of $3.00, indicating a potential upside of 279.75%. Fidelity National Financial has a consensus target price of $56.00, indicating a potential upside of 18.08%. Given SelectQuote’s stronger consensus rating and higher probable upside, analysts clearly believe SelectQuote is more favorable than Fidelity National Financial.

Institutional & Insider Ownership

34.6% of SelectQuote shares are held by institutional investors. Comparatively, 81.2% of Fidelity National Financial shares are held by institutional investors. 13.1% of SelectQuote shares are held by insiders. Comparatively, 5.7% of Fidelity National Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

SelectQuote has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Fidelity National Financial has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Summary

SelectQuote beats Fidelity National Financial on 8 of the 15 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.

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.