FGL (NYSE: FG) and Brighthouse Financial (NASDAQ:BHF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares FGL and Brighthouse Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FGL N/A 9.54% 0.56%
Brighthouse Financial -1.25% 5.93% 0.39%

Insider and Institutional Ownership

65.1% of FGL shares are owned by institutional investors. Comparatively, 85.6% of Brighthouse Financial shares are owned by institutional investors. 21.5% of FGL shares are owned by insiders. Comparatively, 0.0% of Brighthouse Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares FGL and Brighthouse Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FGL $1.72 billion 1.12 $41.00 million N/A N/A
Brighthouse Financial $6.84 billion 0.84 -$378.00 million N/A N/A

FGL has higher earnings, but lower revenue than Brighthouse Financial.

Analyst Recommendations

This is a summary of current recommendations and price targets for FGL and Brighthouse Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FGL 0 2 2 0 2.50
Brighthouse Financial 3 12 2 0 1.94

FGL currently has a consensus price target of $11.50, indicating a potential upside of 28.49%. Brighthouse Financial has a consensus price target of $63.13, indicating a potential upside of 31.61%. Given Brighthouse Financial’s higher possible upside, analysts clearly believe Brighthouse Financial is more favorable than FGL.

Summary

FGL beats Brighthouse Financial on 7 of the 10 factors compared between the two stocks.

About FGL

FGL Holdings, through its subsidiaries, sells individual life insurance products and annuities in the United States. The company offers deferred annuities, including fixed indexed annuity contracts and fixed rate annuity contracts; immediate annuities; and life insurance products. It also provides life and annuity reinsurance services, such as reinsurance on asset intensive, long duration life, and annuity liabilities. The company sells its products through independent agents, managing general agents, and specialty brokerage firms, as well as various institutional markets. FGL Holdings is headquartered in Hamilton, Bermuda.

About Brighthouse Financial

Brighthouse Financial, Inc. provides a range of annuity and life insurance products in the United States. The company operates through three segments: Annuities, Life, and Run-off. It offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security; and term, whole, universal, and variable life insurance products for policyholders' needs for financial security and protected wealth transfer. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.

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