Head to Head Review: Fortegra Financial (FRF) vs. Genworth Financial (GNW)
Fortegra Financial (NYSE: FRF) and Genworth Financial (NYSE:GNW) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Volatility and Risk
Fortegra Financial has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500.
This table compares Fortegra Financial and Genworth Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Fortegra Financial and Genworth Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Genworth Financial||$8.37 billion||0.19||-$277.00 million||$0.67||4.82|
Fortegra Financial has higher earnings, but lower revenue than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than Fortegra Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
66.7% of Genworth Financial shares are held by institutional investors. 0.3% of Genworth Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Fortegra Financial and Genworth Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Genworth Financial has a consensus target price of $3.88, indicating a potential upside of 19.97%. Given Genworth Financial’s higher probable upside, analysts clearly believe Genworth Financial is more favorable than Fortegra Financial.
Genworth Financial beats Fortegra Financial on 10 of the 11 factors compared between the two stocks.
Fortegra Financial Company Profile
Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.
Genworth Financial Company Profile
Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.
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