Financial Analysis: FGL (FG) & Its Peers

FGL (NYSE: FG) is one of 38 public companies in the “Life insurance” industry, but how does it compare to its peers? We will compare FGL to related companies based on the strength of its dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
FGL 18.33% 5.91% 0.26%
FGL Competitors 7.96% 5.79% 1.02%

Earnings & Valuation

This table compares FGL and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FGL $711.00 million $13.00 million 7.11
FGL Competitors $19.62 billion $1.03 billion 22.74

FGL’s peers have higher revenue and earnings than FGL. FGL 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.

Dividends

FGL pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. FGL pays out 3.4% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 1.8% and pay out 20.2% of their earnings in the form of a dividend.

Institutional and Insider Ownership

71.7% of FGL shares are owned by institutional investors. Comparatively, 55.6% of shares of all “Life insurance” companies are owned by institutional investors. 15.1% of FGL shares are owned by company insiders. Comparatively, 13.0% of shares of all “Life insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for FGL and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FGL 0 3 1 0 2.25
FGL Competitors 472 1433 1709 98 2.39

FGL currently has a consensus target price of $9.75, suggesting a potential upside of 15.25%. As a group, “Life insurance” companies have a potential upside of 5.42%. Given FGL’s higher probable upside, equities research analysts plainly believe FGL is more favorable than its peers.

Risk & Volatility

FGL has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, FGL’s peers have a beta of 0.99, meaning that their average share price is 1% less volatile than the S&P 500.

Summary

FGL peers beat FGL on 8 of the 15 factors compared.

About FGL

FGL Holdings 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 reinsurance on asset intensive, long duration life, and annuity liabilities, such as fixed, deferred and payout annuities, long-term care, group long-term disability, and cash value life insurance. 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 Des Moines, Iowa.

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