FAF vs FNF

For growth investors, First American Financial Corporation (FAF) is the stronger pick with 21.

6% revenue growth year-over-year, versus 15. 9% for Fidelity National Financial, Inc. (FNF). Fidelity National Financial, Inc. (FNF) offers the better valuation at 11. 0x trailing P/E (8. 9x forward), making it the more compelling value choice. Analysts rate First American Financial Corporation (FAF) a "Buy" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Fidelity National Financial, Inc.

(FNF) is the cheapest at 11. 0x versus First American Financial Corporation at 11. 4x. On forward P/E, Fidelity National Financial, Inc. is actually cheaper at 8. 9x.

Over the past 5 years, Fidelity National Financial, Inc.

(FNF) delivered a total return of +37. 0%, compared to +21. 0% for First American Financial Corporation (FAF). Over 10 years, the gap is even starker: FNF returned +181. 8% versus FAF's +137. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Fidelity National Financial, Inc.

(FNF) is the lower-risk stock at 0. 58β versus First American Financial Corporation's 0. 59β — meaning FAF is approximately 3% more volatile than FNF relative to the S&P 500. On balance sheet safety, First American Financial Corporation (FAF) carries a lower debt/equity ratio of 35% versus 55% for Fidelity National Financial, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), First American Financial Corporation (FAF) is pulling ahead at 21.

6% versus 15. 9% for Fidelity National Financial, Inc. (FNF). On earnings-per-share growth, the picture is similar: First American Financial Corporation grew EPS 376. 2% year-over-year, compared to 143. 5% for Fidelity National Financial, Inc.. Over a 3-year CAGR, FAF leads at -0. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Fidelity National Financial, Inc.

(FNF) is the more profitable company, earning 9. 5% net margin versus 8. 4% for First American Financial Corporation — meaning it keeps 9. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FNF leads at 13. 0% versus 11. 1% for FAF. At the gross margin level — before operating expenses — FAF leads at 95. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Fidelity National Financial, Inc.

(FNF) trades at 8. 9x forward P/E versus 10. 7x for First American Financial Corporation — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FNF: 30. 9% to $67. 00.

All stocks in this comparison pay dividends.

Fidelity National Financial, Inc. (FNF) offers the highest yield at 3. 8%, versus 3. 1% for First American Financial Corporation (FAF).

For long-horizon retirement investors, Fidelity National Financial, Inc.

(FNF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 58), 3. 8% yield, +181. 8% 10Y return). Both have compounded well over 10 years (FNF: +181. 8%, FAF: +137. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.