GWG Holdings (NASDAQ: GWGH) and Aegon NV (NYSE:AEG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for GWG Holdings and Aegon NV, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GWG Holdings 0 0 2 0 3.00
Aegon NV 0 3 2 0 2.40

GWG Holdings presently has a consensus price target of $14.50, indicating a potential upside of 38.38%. Aegon NV has a consensus price target of $5.00, indicating a potential downside of 15.68%. Given GWG Holdings’ stronger consensus rating and higher probable upside, research analysts plainly believe GWG Holdings is more favorable than Aegon NV.

Earnings & Valuation

This table compares GWG Holdings and Aegon NV’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GWG Holdings $62.55 million 0.97 -$15.50 million ($2.68) -3.91
Aegon NV $64.93 billion 0.20 $2.82 billion $0.91 6.52

Aegon NV has higher revenue and earnings than GWG Holdings. GWG Holdings is trading at a lower price-to-earnings ratio than Aegon NV, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares GWG Holdings and Aegon NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GWG Holdings -21.92% -184.34% 4.35%
Aegon NV 5.18% 6.73% 0.40%

Institutional & Insider Ownership

0.2% of GWG Holdings shares are owned by institutional investors. Comparatively, 10.3% of Aegon NV shares are owned by institutional investors. 77.4% of GWG Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Aegon NV pays an annual dividend of $0.24 per share and has a dividend yield of 4.0%. GWG Holdings does not pay a dividend. Aegon NV pays out 26.4% of its earnings in the form of a dividend.

Risk and Volatility

GWG Holdings has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Aegon NV has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Summary

Aegon NV beats GWG Holdings on 9 of the 15 factors compared between the two stocks.

About GWG Holdings

GWG Holdings, Inc. is a financial service company. The Company is a financial purchaser of life insurance assets in the secondary market. The Company creates opportunities for consumers owning life insurance to obtain value for their policies as compared to the traditional options offered by insurance companies. The Company also creates opportunities for investors to participate in alternative asset classes, such as life insurance, not correlated to traditional financial markets. The Company conducts its life insurance related business through its subsidiary, GWG Life, LLC. It generally purchases life insurance assets directly from policy owners having purchased their life insurance in the primary market. Its operational platform offers various options to customers based on the market value of their life insurance, including selling the entire policy benefit for cash, or selling a portion of the policy benefit and retaining a portion of the benefit with no future premium obligation.

About Aegon NV

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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