Fidelity and Guaranty Life (FGL) and Aegon NV (AEG) Critical Analysis
Fidelity and Guaranty Life (NYSE: FGL) and Aegon NV (NYSE:AEG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, valuation, earnings, risk and institutional ownership.
Risk & Volatility
Fidelity and Guaranty Life has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Aegon NV has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
Insider and Institutional Ownership
23.4% of Fidelity and Guaranty Life shares are held by institutional investors. Comparatively, 10.4% of Aegon NV shares are held by institutional investors. 0.6% of Fidelity and Guaranty Life 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.
Valuation & Earnings
This table compares Fidelity and Guaranty Life and Aegon NV’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fidelity and Guaranty Life||$1.29 billion||1.41||$457.00 million||$2.91||10.72|
|Aegon NV||$60.46 billion||0.17||$2.07 billion||$0.40||12.73|
Aegon NV has higher revenue and earnings than Fidelity and Guaranty Life. Fidelity and Guaranty Life is trading at a lower price-to-earnings ratio than Aegon NV, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Fidelity and Guaranty Life and Aegon NV, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity and Guaranty Life||0||2||0||0||2.00|
Fidelity and Guaranty Life currently has a consensus target price of $26.40, indicating a potential downside of 15.38%. Aegon NV has a consensus target price of $5.00, indicating a potential downside of 1.77%. Given Aegon NV’s stronger consensus rating and higher possible upside, analysts clearly believe Aegon NV is more favorable than Fidelity and Guaranty Life.
This table compares Fidelity and Guaranty Life and Aegon NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity and Guaranty Life||13.16%||9.10%||0.61%|
Fidelity and Guaranty Life pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Aegon NV pays an annual dividend of $0.24 per share and has a dividend yield of 4.7%. Fidelity and Guaranty Life pays out 8.9% of its earnings in the form of a dividend. Aegon NV pays out 60.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Fidelity and Guaranty Life beats Aegon NV on 9 of the 16 factors compared between the two stocks.
Fidelity and Guaranty Life Company Profile
Fidelity & Guaranty Life (FGL) is a holding company focused on obtaining controlling equity stakes in companies that operate across various industries. FGL’s primary business is the sale of individual life insurance products and annuities through independent agents, managing general agents, and specialty brokerage firms and in selected institutional markets. FGL’s principal products are deferred annuities (including fixed indexed annuity (FIA) contracts), immediate annuities and life insurance products. FGL markets products through its insurance subsidiaries, Fidelity & Guaranty Life Insurance Company (FGL Insurance) and Fidelity & Guaranty Life Insurance Company of New York (FGL NY Insurance). It distributes and services primarily fixed rate annuities, including FIAs. The Company provides FIA’s for pre-retirement wealth accumulation and post-retirement income management. Its life insurance provides wealth protection and transfer opportunities through indexed universal life products.
Aegon NV Company Profile
Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.
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