Fairfax Financial Holdings Ltd Subordinate Voting Shares (FRFHF) & ProAssurance (PRA) Head to Head Analysis

Fairfax Financial Holdings Ltd Subordinate Voting Shares (OTCMKTS:FRFHF) and ProAssurance (NYSE:PRA) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

1.0% of Fairfax Financial Holdings Ltd Subordinate Voting Shares shares are owned by institutional investors. Comparatively, 85.8% of ProAssurance shares are owned by institutional investors. 1.8% of ProAssurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Fairfax Financial Holdings Ltd Subordinate Voting Shares and ProAssurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fairfax Financial Holdings Ltd Subordinate Voting Shares 10.81% 9.71% 2.55%
ProAssurance 9.67% 6.14% 2.12%

Dividends

Fairfax Financial Holdings Ltd Subordinate Voting Shares pays an annual dividend of $10.00 per share and has a dividend yield of 1.9%. ProAssurance pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. ProAssurance pays out 61.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Fairfax Financial Holdings Ltd Subordinate Voting Shares and ProAssurance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fairfax Financial Holdings Ltd Subordinate Voting Shares $16.22 billion 0.90 $1.74 billion N/A N/A
ProAssurance $866.15 million 2.86 $107.26 million $2.02 22.85

Fairfax Financial Holdings Ltd Subordinate Voting Shares has higher revenue and earnings than ProAssurance.

Risk & Volatility

Fairfax Financial Holdings Ltd Subordinate Voting Shares has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, ProAssurance has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Fairfax Financial Holdings Ltd Subordinate Voting Shares and ProAssurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fairfax Financial Holdings Ltd Subordinate Voting Shares 0 0 0 0 N/A
ProAssurance 0 5 1 0 2.17

ProAssurance has a consensus target price of $49.33, suggesting a potential upside of 6.90%. Given ProAssurance’s higher possible upside, analysts clearly believe ProAssurance is more favorable than Fairfax Financial Holdings Ltd Subordinate Voting Shares.

Summary

ProAssurance beats Fairfax Financial Holdings Ltd Subordinate Voting Shares on 8 of the 14 factors compared between the two stocks.

About Fairfax Financial Holdings Ltd Subordinate Voting Shares

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The company also underwrites specialty insurance and reinsurance; develops, produces, markets, and distributes television programs; and franchises, owns, and operates dining restaurants and holiday resorts. In addition, it is involved in the provision of pet medical insurance and database services; retail of tableware and gifts, and home improvement goods, as well as sporting goods and sports apparel comprising golf equipment, consumables, and athletic apparel and accessories; investment of real estate; and provision of integrated travel and travel-related financial services. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was founded in 1951 and is headquartered in Toronto, Canada.

About ProAssurance

ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare professionals and facilities; professional liability insurance for attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance for employers, groups, and associations. The company markets its products through independent agencies and brokers, as well as an internal sales force. ProAssurance Corporation was founded in 1976 and is headquartered in Birmingham, Alabama.

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