WallStSmart

First American Corporation (FAF)vsRyan Specialty Group Holdings Inc (RYAN)

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Smart Verdict

WallStSmart Research — data-driven comparison

First American Corporation generates 149% more annual revenue ($7.45B vs $2.99B). FAF leads profitability with a 8.3% profit margin vs 2.1%. FAF trades at a lower P/E of 9.7x. FAF earns a higher WallStSmart Score of 72/100 (B).

FAF

Strong Buy

72

out of 100

Grade: B

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

RYAN

Buy

54

out of 100

Grade: C-

Growth: 8.7Profit: 6.5Value: 3.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FAFUndervalued (+77.1%)

Margin of Safety

+77.1%

Fair Value

$280.80

Current Price

$58.36

$222.44 discount

UndervaluedFair: $280.80Overvalued
RYANSignificantly Overvalued (-95.7%)

Margin of Safety

-95.7%

Fair Value

$22.00

Current Price

$33.50

$11.50 premium

UndervaluedFair: $22.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

RYAN1 strengths · Avg: 10.0/10
EPS GrowthGrowth
110.1%10/10

Earnings expanding 110.1% YoY

Areas to Watch

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

RYAN4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
71.3x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.612/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RYAN

The strongest argument for RYAN centers on EPS Growth. Revenue growth of 13.6% demonstrates continued momentum.

Bear Case : FAF

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

Bear Case : RYAN

The primary concerns for RYAN are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 71.3x leaves little room for execution misses. Debt-to-equity of 5.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

FAF profiles as a growth stock while RYAN is a value 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 54/100) and 21.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

First American Corporation

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

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

Ryan Specialty Group Holdings Inc

FINANCIAL SERVICES · INSURANCE - SPECIALTY · USA

Ryan Specialty Group Holdings Inc is a leading provider of specialty insurance solutions, focused on delivering innovative risk management services across diverse sectors. The company leverages a vast network of insurance wholesale operations and underwriting expertise to meet the complex needs of its clients, backed by strong relationships with insurers and distribution channels. By integrating advanced technology and analytics, Ryan Specialty enhances underwriting efficiencies and client results, positioning itself as a key player in the evolving insurance landscape. With a commitment to strategic growth initiatives, the company is poised to create sustainable shareholder value in a dynamic market.

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