First American Corporation (FAF)vsWells Fargo & Company (WFC)
FAF
First American Corporation
$78.17
-1.25%
FINANCIAL SERVICES · Cap: $7.44B
WFC
Wells Fargo & Company
$85.43
+1.86%
FINANCIAL SERVICES · Cap: $264.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 977% more annual revenue ($83.03B vs $7.71B). WFC leads profitability with a 27.2% profit margin vs 8.7%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 76/100 (B+).
FAF
Strong Buy68
out of 100
Grade: B-
WFC
Strong Buy76
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 70.4% YoY
16.2% revenue growth
Mega-cap, among the largest globally
Strong operational efficiency at 37.1%
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 25.0% YoY
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : FAF
The strongest argument for FAF centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 16.2% demonstrates continued momentum.
Bull Case : WFC
The strongest argument for WFC centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.1%.
Bear Case : FAF
The primary concerns for FAF are PEG Ratio, Free Cash Flow.
Bear Case : WFC
The primary concerns for WFC are PEG Ratio, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.55 is elevated, increasing financial risk.
Key Dynamics to Monitor
FAF profiles as a growth stock while WFC is a mature play — different risk/reward profiles.
FAF carries more volatility with a beta of 1.25 — expect wider price swings.
FAF is growing revenue faster at 16.2% — sustainability is the question.
WFC generates stronger free cash flow (9.1B), providing more financial flexibility.
Bottom Line
WFC scores higher overall (76/100 vs 68/100), backed by strong 27.2% margins. Both earn "Strong Buy" and "Strong 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
Compare with Other INSURANCE - SPECIALTY Stocks
Want to dig deeper into these stocks?