GWG Holdings (NASDAQ: GWGH) is one of 31 publicly-traded companies in the “Life & Health Insurance” industry, but how does it compare to its rivals? We will compare GWG Holdings to related businesses based on the strength of its risk, dividends, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for GWG Holdings and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GWG Holdings 0 0 2 0 3.00
GWG Holdings Competitors 348 1383 1898 80 2.46

GWG Holdings currently has a consensus price target of $14.50, suggesting a potential upside of 50.69%. As a group, “Life & Health Insurance” companies have a potential upside of 9.78%. Given GWG Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe GWG Holdings is more favorable than its rivals.

Insider & Institutional Ownership

42.5% of GWG Holdings shares are owned by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 77.4% of GWG Holdings shares are owned by insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GWG Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GWG Holdings -21.92% -184.34% 4.35%
GWG Holdings Competitors 4.29% 1.62% 1.76%

Earnings and Valuation

This table compares GWG Holdings and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
GWG Holdings $62.55 million N/A -3.59
GWG Holdings Competitors $28.59 billion $2.35 billion 51.29

GWG Holdings’ rivals have higher revenue and earnings than GWG Holdings. GWG Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

GWG Holdings has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, GWG Holdings’ rivals have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.

Summary

GWG Holdings rivals beat GWG Holdings on 7 of the 12 factors compared.

About GWG Holdings

GWG Holdings, Inc. is the parent company of GWG Life, is a financial services company. The Company is a financial purchaser of life insurance assets in the secondary market. It creates opportunities for consumers owning life insurance to obtain value for their policies as compared to the traditional options offered by insurance companies. It also creates opportunities for investors to participate in alternative asset classes, such as life insurance, not correlated to traditional financial markets. Through its subsidiary GWG Life, LLC, it has developed an option for the life insurance secondary market called LifeCare Xchange (LCX). It provides seniors with the exchange value of their life insurance policies they can apply to long-term care and other post-retirement needs. It generally purchases life insurance assets directly from policy owners having purchased their life insurance in the primary market.

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