WallStSmart

Employers Holdings Inc (EIG)vsFirst American Corporation (FAF)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

First American Corporation generates 768% more annual revenue ($7.45B vs $858.70M). FAF leads profitability with a 8.3% profit margin vs 1.3%. EIG appears more attractively valued with a PEG of 1.32. FAF earns a higher WallStSmart Score of 72/100 (B).

EIG

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 3.5Value: 4.7Quality: 7.8
Piotroski: 4/9

FAF

Strong Buy

72

out of 100

Grade: B

Growth: 4.7Profit: 6.5Value: 10.0Quality: 7.3
Piotroski: 6/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EIGSignificantly Overvalued (-1274.1%)

Margin of Safety

-1274.1%

Fair Value

$3.13

Current Price

$40.06

$36.93 premium

UndervaluedFair: $3.13Overvalued
FAFUndervalued (+77.1%)

Margin of Safety

+77.1%

Fair Value

$280.80

Current Price

$58.36

$222.44 discount

UndervaluedFair: $280.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EIG2 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

FAF3 strengths · Avg: 9.3/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
21.6%8/10

Revenue surging 21.6% year-over-year

Areas to Watch

EIG4 concerns · Avg: 2.8/10
Market CapQuality
$761.55M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
1.3%3/10

1.3% margin — thin

P/E RatioValuation
85.0x2/10

Premium valuation, high expectations priced in

FAF3 concerns · Avg: 4.0/10
PEG RatioValuation
2.044/10

Expensive relative to growth rate

EPS GrowthGrowth
1.9%4/10

1.9% earnings growth

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : EIG

The strongest argument for EIG centers on Price/Book, Debt/Equity. PEG of 1.32 suggests the stock is reasonably priced for its growth.

Bull Case : FAF

The strongest argument for FAF centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 21.6% demonstrates continued momentum.

Bear Case : EIG

The primary concerns for EIG are Market Cap, Return on Equity, Profit Margin. A P/E of 85.0x leaves little room for execution misses. Thin 1.3% margins leave little buffer for downturns.

Bear Case : FAF

The primary concerns for FAF are PEG Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

EIG profiles as a value stock while FAF is a growth play — different risk/reward profiles.

FAF carries more volatility with a beta of 1.26 — expect wider price swings.

FAF is growing revenue faster at 21.6% — sustainability is the question.

FAF generates stronger free cash flow (325M), providing more financial flexibility.

Bottom Line

FAF scores higher overall (72/100 vs 47/100) and 21.6% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Employers Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Employers Holdings, Inc. operates in the commercial property and casualty insurance industry primarily in the United States. The company is headquartered in Reno, Nevada.

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First American Corporation

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

First American Financial Corporation, provides financial services. The company is headquartered in Santa Ana, California.

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