Reviewing Genworth Financial (GNW) and Its Competitors

Genworth Financial (NYSE: GNW) is one of 20 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its peers? We will compare Genworth Financial to related companies based on the strength of its profitability, earnings, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Genworth Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial 3.88% 1.57% 0.22%
Genworth Financial Competitors 6.74% 12.40% 2.77%

Risk and Volatility

Genworth Financial has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500. Comparatively, Genworth Financial’s peers have a beta of 1.30, indicating that their average stock price is 30% more volatile than the S&P 500.

Valuation and Earnings

This table compares Genworth Financial and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Genworth Financial $8.37 billion -$277.00 million 4.76
Genworth Financial Competitors $11.13 billion $534.17 million 241.03

Genworth Financial’s peers have higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for Genworth Financial and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 3 1 0 2.25
Genworth Financial Competitors 113 696 797 21 2.45

Genworth Financial currently has a consensus target price of $3.88, suggesting a potential upside of 14.64%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 2.92%. Given Genworth Financial’s higher probable upside, analysts plainly believe Genworth Financial is more favorable than its peers.

Institutional & Insider Ownership

66.9% of Genworth Financial shares are held by institutional investors. Comparatively, 62.1% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.3% of Genworth Financial shares are held by insiders. Comparatively, 15.5% of shares of all “Multiline Insurance & Brokers” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Genworth Financial peers beat Genworth Financial on 10 of the 13 factors compared.

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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