GWG (NASDAQ: ANAT) and American National Insurance (NASDAQ:ANAT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Volatility and Risk

GWG has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, American National Insurance has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares GWG and American National Insurance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GWG $64.13 million 0.57 -$20.63 million $3.16 1.99
American National Insurance $3.41 billion 1.01 $493.65 million N/A N/A

American National Insurance has higher revenue and earnings than GWG.

Analyst Recommendations

This is a summary of current recommendations and price targets for GWG and American National Insurance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GWG 0 0 1 0 3.00
American National Insurance 0 0 0 0 N/A

GWG currently has a consensus price target of $14.00, suggesting a potential upside of 122.58%. Given GWG’s higher probable upside, equities analysts clearly believe GWG is more favorable than American National Insurance.

Profitability

This table compares GWG and American National Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GWG -38.85% -87.97% 4.35%
American National Insurance 14.66% 3.84% 0.75%

Dividends

American National Insurance pays an annual dividend of $3.28 per share and has a dividend yield of 2.6%. GWG does not pay a dividend. American National Insurance has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

0.3% of GWG shares are held by institutional investors. Comparatively, 66.4% of American National Insurance shares are held by institutional investors. 77.4% of GWG shares are held by company insiders. Comparatively, 23.5% of American National Insurance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

American National Insurance beats GWG on 10 of the 14 factors compared between the two stocks.

About GWG

GWG Holdings, Inc., a financial services company, purchases life insurance policies in the secondary market in the United States. It purchases or finances life insurance assets from consumers in the secondary market at a discount to the face value of the policy benefit. The company also purchases policies in the secondary market through financial advisors and appointed agents. In addition, it focuses on applying proprietary M-Panel epigenetic technology to disrupt traditional life insurance underwriting practices. Further, it provides secured loans to merchant cash advance funders, as well as merchant cash advances directly to small businesses. GWG Holdings, Inc. was founded in 2006 and is headquartered in Minneapolis, Minnesota.

About American National Insurance

American National Insurance Company, together with its subsidiaries, provides various insurance products and services in the United States, the District of Columbia, and Puerto Rico. The company's Life segment offers whole life, term life, universal life, variable universal life, and credit life insurance products. Its Annuity segment provides deferred, variable, and single premium immediate annuity products. The company's Health segment offers medicare supplement, supplemental, stop-loss, credit disability, and medical expense insurance. Its Property and Casualty segment provides personal lines insurance, such as auto, homeowners, boats, motorcycles, recreational vehicles, and other exposures; and commercial lines of insurance, including property and casualty coverage tailored for a farm, ranch, or other agricultural business within the rural and suburban markets, as well as property, liability, and workers' compensation coverages. This segment also offers credit-related property insurance products comprising collateral or creditor protection insurance; guaranteed auto protection or guaranteed asset protection insurance; and mortgage security insurance. The company distributes its products through career and multiple-line agents, broker-dealers, independent insurance agents and brokers, managing general underwriters, and financial institutions, as well as through direct marketing channels. American National Insurance Company was founded in 1905 and is headquartered in Galveston, Texas.

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