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FAF vs JPM

FAF
First American Financial Corporation
BULLISH
Price
$70.87
Market Cap
$7.25B
Sector
Financial Services
AI Confidence
85%
JPM
JPMorgan Chase & Co.
NEUTRAL
Price
$313.68
Market Cap
$846.01B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
FAF
10.9
JPM
15.68
Forward P/E
FAF
9.74
JPM
13.42
P/B Ratio
FAF
1.32
JPM
2.47
P/S Ratio
FAF
0.94
JPM
5.03
EV/EBITDA
FAF
5.93
JPM
--

Profitability

Gross Margin
FAF
63.87%
JPM
0.0%
Operating Margin
FAF
11.08%
JPM
41.06%
Profit Margin
FAF
8.73%
JPM
33.91%
ROE
FAF
12.8%
JPM
16.13%
ROA
FAF
3.94%
JPM
1.35%

Growth

Revenue Growth
FAF
16.2%
JPM
2.5%
Earnings Growth
FAF
70.4%
JPM
-3.6%

Financial Health

Debt/Equity
FAF
0.51
JPM
--
Current Ratio
FAF
0.41
JPM
--
Quick Ratio
FAF
0.41
JPM
--

Dividends

Dividend Yield
FAF
3.09%
JPM
1.91%
Payout Ratio
FAF
33.69%
JPM
28.97%

AI Verdict

FAF BULLISH

FAF presents a compelling value opportunity, trading significantly below its Graham Number ($88.68) and Intrinsic Value ($191.75). While the Piotroski F-Score of 4/9 indicates stable rather than strong financial health, this is offset by explosive earnings growth of 70.4% YoY and a very attractive P/E ratio of 10.90. Despite a contradictory technical scorecard, recent price action is strongly bullish, trending toward 52-week highs. The company maintains a sustainable dividend profile with a low payout ratio of 33.69%.

Strengths
Significant undervaluation relative to Graham Number ($88.68) and Intrinsic Value ($191.75)
Exceptional earnings growth (70.4% YoY) and strong Q/Q revenue growth (21.74%)
Low P/E ratio (10.90) compared to the broader financial services sector average
Risks
High PEG ratio (2.98) suggests that current growth may be difficult to sustain or is already priced in
Low current ratio (0.41) indicates potential short-term liquidity tightness
Piotroski F-Score of 4/9 suggests mediocre operational efficiency improvements
JPM NEUTRAL

JPM exhibits a concerning Piotroski F-Score of 2/9, indicating weak short-term fundamental health, and currently trades at a significant premium to both its Graham Number ($239.11) and Intrinsic Value ($140.07). While the company maintains a strong ROE of 16.13% and dominant market positioning, negative YoY earnings growth (-3.60%) and bearish insider activity from the CEO and CFO signal internal caution. The stock's current price of $313.68 suggests the market is pricing in a growth premium that is not currently supported by the deterministic health or value metrics.

Strengths
Strong profitability with a 33.91% profit margin
Robust Return on Equity (ROE) of 16.13%
Conservative dividend payout ratio of 28.97%
Risks
Very low Piotroski F-Score (2/9) suggesting deteriorating financial health
Significant overvaluation relative to Intrinsic Value ($140.07)
Negative Year-over-Year earnings growth (-3.60%)

Compare Another Pair

FAF vs JPM: Head-to-Head Comparison

This page compares First American Financial Corporation (FAF) and JPMorgan Chase & Co. (JPM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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