GWG Holdings (NASDAQ: GWGH) is one of 29 public companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its rivals? We will compare GWG Holdings to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

42.5% of GWG Holdings shares are owned by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 77.4% of GWG Holdings shares are owned by insiders. Comparatively, 9.6% of shares of all “Life & Health Insurance” companies are owned 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.

Profitability

This table compares GWG Holdings and its rivals’ 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 5.21% 1.96% 1.96%

Analyst Ratings

This is a breakdown of recent ratings for GWG Holdings and its rivals, 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 232 1115 1671 80 2.52

GWG Holdings currently has a consensus price target of $14.50, suggesting a potential upside of 41.46%. As a group, “Life & Health Insurance” companies have a potential upside of 7.62%. Given GWG Holdings’ stronger consensus rating and higher probable upside, equities analysts plainly believe GWG Holdings is more favorable than its rivals.

Risk & Volatility

GWG Holdings has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, GWG Holdings’ rivals have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
GWG Holdings $62.55 million N/A -3.82
GWG Holdings Competitors $28.59 billion $2.35 billion 53.79

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

Summary

GWG Holdings rivals beat GWG Holdings on 6 of the 11 factors compared.

About GWG Holdings

GWG Holdings, Inc. is the parent company of GWG Life, is a financial services company. The Company is focused on transforming the life insurance industry through its products and services. The Company has developed a new suite of options for the life insurance secondary market called LifeCare Xchange (LCX). This new capability provides seniors with the exchange value of their life insurance policies they can apply to long-term care and other post-retirement needs. Through its subsidiary GWG Life, LLC, seeks to further transform the industry by applying proprietary M-Panel epigenetic technology to disrupt traditional life insurance underwriting practices.

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