GWG Holdings (NASDAQ: GWGH) is one of 31 public companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its competitors? We will compare GWG Holdings to related businesses based on the strength of its risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Volatility & Risk

GWG Holdings has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, GWG Holdings’ competitors have a beta of 1.28, indicating that their average stock price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

42.5% of GWG Holdings shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 77.4% of GWG Holdings shares are held by company insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GWG Holdings and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GWG Holdings 0 0 2 0 3.00
GWG Holdings Competitors 348 1376 1887 80 2.46

GWG Holdings currently has a consensus target price of $14.50, indicating a potential upside of 41.77%. As a group, “Life & Health Insurance” companies have a potential upside of 10.11%. Given GWG Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe GWG Holdings is more favorable than its competitors.

Profitability

This table compares GWG Holdings and its competitors’ 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%
GWG Holdings Competitors 4.00% 1.18% 1.80%

Earnings & Valuation

This table compares GWG Holdings and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
GWG Holdings $62.55 million N/A -3.82
GWG Holdings Competitors $28.39 billion $2.33 billion 49.10

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

Summary

GWG Holdings competitors beat GWG Holdings on 7 of the 12 factors compared.

GWG Holdings Company Profile

GWG Holdings, Inc. is the parent company of GWG Life, is a financial services company. The Company is a financial purchaser of life insurance assets in the secondary market. It creates opportunities for consumers owning life insurance to obtain value for their policies as compared to the traditional options offered by insurance companies. It also creates opportunities for investors to participate in alternative asset classes, such as life insurance, not correlated to traditional financial markets. Through its subsidiary GWG Life, LLC, it has developed an option for the life insurance secondary market called LifeCare Xchange (LCX). It provides seniors with the exchange value of their life insurance policies they can apply to long-term care and other post-retirement needs. It generally purchases life insurance assets directly from policy owners having purchased their life insurance in the primary market.

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