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FAF vs LNC

FAF
First American Financial Corporation
BULLISH
Price
$70.87
Market Cap
$7.25B
Sector
Financial Services
AI Confidence
85%
LNC
Lincoln National Corporation
BEARISH
Price
$36.98
Market Cap
$7.07B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
FAF
10.9
LNC
6.34
Forward P/E
FAF
9.74
LNC
4.38
P/B Ratio
FAF
1.32
LNC
0.71
P/S Ratio
FAF
0.94
LNC
0.39
EV/EBITDA
FAF
5.93
LNC
-24.79

Profitability

Gross Margin
FAF
63.87%
LNC
24.22%
Operating Margin
FAF
11.08%
LNC
12.87%
Profit Margin
FAF
8.73%
LNC
6.44%
ROE
FAF
12.8%
LNC
12.28%
ROA
FAF
3.94%
LNC
0.16%

Growth

Revenue Growth
FAF
16.2%
LNC
-3.1%
Earnings Growth
FAF
70.4%
LNC
-60.7%

Financial Health

Debt/Equity
FAF
0.51
LNC
0.65
Current Ratio
FAF
0.41
LNC
2.23
Quick Ratio
FAF
0.41
LNC
1.15

Dividends

Dividend Yield
FAF
3.09%
LNC
4.87%
Payout Ratio
FAF
33.69%
LNC
30.87%

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
LNC BEARISH

LNC presents as a classic value trap, characterized by a critically weak Piotroski F-Score of 2/9, indicating severe deterioration in fundamental financial health. While the stock trades at a significant discount to its Graham Number ($82.75) and slightly below its intrinsic value ($40.81), this valuation is offset by negative YoY revenue and earnings growth. Bearish insider activity and a 0/100 technical trend further signal a lack of confidence in a near-term recovery. Despite a sustainable dividend payout ratio, the underlying operational decay makes the current price a risky entry point.

Strengths
Deep value valuation with a P/E of 6.34 and P/B of 0.71
Trading below both Graham Number and Intrinsic Value estimates
Sustainable dividend payout ratio at 30.87%
Risks
Critically low Piotroski F-Score (2/9) signaling poor financial health
Severe YoY earnings contraction of -60.70%
Negative revenue growth (-3.10% YoY)

Compare Another Pair

FAF vs LNC: Head-to-Head Comparison

This page compares First American Financial Corporation (FAF) and Lincoln National Corporation (LNC) 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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