Genworth Financial (NYSE: GNW) and National Western Life Group (NASDAQ:NWLI) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for Genworth Financial and National Western Life Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Western Life Group||0||0||0||0||N/A|
Genworth Financial presently has a consensus price target of $4.05, suggesting a potential upside of 18.97%. Given Genworth Financial’s higher possible upside, equities analysts clearly believe Genworth Financial is more favorable than National Western Life Group.
Volatility and Risk
Genworth Financial has a beta of 2.7, suggesting that its share price is 170% more volatile than the S&P 500. Comparatively, National Western Life Group has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Valuation & Earnings
This table compares Genworth Financial and National Western Life Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genworth Financial||$8.74 billion||0.19||$852.00 million||($0.30)||-11.33|
|National Western Life Group||$788.97 million||1.59||$171.25 million||$30.07||12.14|
Genworth Financial has higher revenue and earnings than National Western Life Group. Genworth Financial is trading at a lower price-to-earnings ratio than National Western Life Group, indicating that it is currently the more affordable of the two stocks.
National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Genworth Financial does not pay a dividend. National Western Life Group pays out 1.2% of its earnings in the form of a dividend.
This table compares Genworth Financial and National Western Life Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Western Life Group||13.10%||5.33%||0.78%|
Institutional & Insider Ownership
67.6% of Genworth Financial shares are owned by institutional investors. Comparatively, 79.0% of National Western Life Group shares are owned by institutional investors. 0.3% of Genworth Financial shares are owned by insiders. Comparatively, 1.0% of National Western Life Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
National Western Life Group beats Genworth Financial on 8 of the 14 factors compared between the two stocks.
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.
National Western Life Group Company Profile
National Western Life Insurance Company (National Western) is a stock life insurance company. The Company operates in two segments: Domestic Insurance Operations and International Insurance Operations. The products marketed under domestic insurance operations are annuities, universal life insurance and traditional life insurance, which include both term and whole life products. National Western’s international operations focus on foreign nationals in upper socioeconomic classes. The Company provides life insurance products for the savings and protection needs of approximately 126,700 policyholders and for the asset accumulation and retirement needs of 139,100 annuity contract holders. National Western offers a portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders.
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