Citizens (NYSE: GNW) and Genworth Financial (NYSE:GNW) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

21.7% of Citizens shares are held by institutional investors. Comparatively, 63.4% of Genworth Financial shares are held by institutional investors. 0.1% of Citizens shares are held by insiders. Comparatively, 0.3% of Genworth Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Citizens and Genworth Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens -17.33% -19.34% -2.62%
Genworth Financial 9.32% 4.85% 0.70%

Risk & Volatility

Citizens has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.4, indicating that its share price is 140% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Citizens and Genworth Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens 0 0 0 0 N/A
Genworth Financial 0 3 0 0 2.00

Genworth Financial has a consensus price target of $4.50, suggesting a potential downside of 0.88%. Given Genworth Financial’s higher possible upside, analysts clearly believe Genworth Financial is more favorable than Citizens.

Earnings and Valuation

This table compares Citizens and Genworth Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens $252.62 million 1.64 -$38.12 million N/A N/A
Genworth Financial $8.30 billion 0.27 $817.00 million $1.39 3.27

Genworth Financial has higher revenue and earnings than Citizens.

Summary

Genworth Financial beats Citizens on 9 of the 10 factors compared between the two stocks.

About Citizens

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates through two segments, Life Insurance and Home Service Insurance. The Life Insurance segment offers ordinary whole life, burial insurance, pre-need policies, and accident and health related policies, as well as credit life insurance and final expense policies to middle and lower income families, and individuals in the Midwest and Southern United States; and whole life and endowment policies to international residents. This segment offers its products through third-party marketing organizations and independent marketing consultants. The Home Service Insurance segment provides pre-need, final expense, and ordinary and industrial life insurance services; and annuities, as well as limited liability property policies to middle and lower income individuals in Louisiana, Mississippi, and Arkansas. This segment markets its products through funeral homes and independent agents, as well as through a home service marketing distribution system. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.

About Genworth Financial

Genworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance products and services that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance and bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products and fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment's institutional products include funding agreements, funding agreements backing notes, and guaranteed investment contracts. It distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 2003 and is headquartered in Richmond, Virginia.

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