STC vs FAF

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

6% revenue growth year-over-year, versus 17. 3% for Stewart Information Services Corporation (STC). First American Financial Corporation (FAF) offers the better valuation at 11. 4x trailing P/E (10. 7x forward), making it the more compelling value choice. Analysts rate Stewart Information Services Corporation (STC) a "Buy" — based on 8 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, First American Financial Corporation (FAF) is the cheapest at 11.

4x versus Stewart Information Services Corporation at 17. 0x. On forward P/E, First American Financial Corporation is actually cheaper at 10. 7x.

Over the past 5 years, Stewart Information Services Corporation (STC) delivered a total return of +28.

7%, compared to +21. 0% for First American Financial Corporation (FAF). Over 10 years, the gap is even starker: FAF returned +137. 3% versus STC's +135. 9%. 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), First American Financial Corporation (FAF) is the lower-risk stock at 0.

59β versus Stewart Information Services Corporation's 0. 78β — meaning STC is approximately 32% more volatile than FAF relative to the S&P 500. On balance sheet safety, First American Financial Corporation (FAF) carries a lower debt/equity ratio of 35% versus 54% for Stewart Information Services Corporation — 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 17. 3% for Stewart Information Services Corporation (STC). On earnings-per-share growth, the picture is similar: First American Financial Corporation grew EPS 376. 2% year-over-year, compared to 54. 8% for Stewart Information Services Corporation. 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.

First American Financial Corporation (FAF) is the more profitable company, earning 8.

4% net margin versus 4. 0% for Stewart Information Services Corporation — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FAF leads at 11. 1% versus 5. 7% for STC. 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, First American Financial Corporation (FAF) trades at 10.

7x forward P/E versus 11. 3x for Stewart Information Services Corporation — 0. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FAF: 21. 4% to $83. 00.

All stocks in this comparison pay dividends.

First American Financial Corporation (FAF) offers the highest yield at 3. 1%, versus 2. 9% for Stewart Information Services Corporation (STC).

For long-horizon retirement investors, First American Financial Corporation (FAF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

59), 3. 1% yield, +137. 3% 10Y return). Both have compounded well over 10 years (FAF: +137. 3%, STC: +135. 9%), 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.