FBL Financial Group (NYSE: FFG) and Emergent Capital (OTCMKTS:EMGC) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

FBL Financial Group pays an annual dividend of $1.76 per share and has a dividend yield of 2.3%. Emergent Capital does not pay a dividend. FBL Financial Group pays out 39.2% of its earnings in the form of a dividend. FBL Financial Group has raised its dividend for 4 consecutive years.

Valuation and Earnings

This table compares FBL Financial Group and Emergent Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FBL Financial Group $726.41 million 2.57 $107.22 million $4.49 16.68
Emergent Capital $1.12 million 54.99 -$49.68 million ($0.98) -0.40

FBL Financial Group has higher revenue and earnings than Emergent Capital. Emergent Capital is trading at a lower price-to-earnings ratio than FBL Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for FBL Financial Group and Emergent Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FBL Financial Group 0 1 0 0 2.00
Emergent Capital 0 0 1 0 3.00

Insider & Institutional Ownership

27.7% of FBL Financial Group shares are held by institutional investors. 0.6% of FBL Financial Group shares are held by insiders. Comparatively, 33.3% of Emergent Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares FBL Financial Group and Emergent Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FBL Financial Group 15.30% 8.93% 1.12%
Emergent Capital -42.49% -12.80% -3.98%

Risk and Volatility

FBL Financial Group has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Emergent Capital has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500.

Summary

FBL Financial Group beats Emergent Capital on 10 of the 15 factors compared between the two stocks.

FBL Financial Group Company Profile

FBL Financial Group, Inc. sells individual life insurance and annuity products under the brand name of Farm Bureau Financial Services. The Company’s segments are Annuity Segment, which sells a variety of traditional annuity products; Life Insurance Segment, which sells a range of traditional and universal life insurance products, and Corporate and Other segment, which provides various support operations, corporate capital and other product lines. It also offers life and annuity products through its subsidiary, Greenfields Life Insurance Company. Its other subsidiaries support various functional areas and affiliates by providing investment advisory and marketing and distribution services. It manages all aspects of two Farm Bureau affiliated property-casualty insurance companies, Farm Bureau Property & Casualty Insurance Company and Western Agricultural Insurance Company.

Emergent Capital Company Profile

Emergent Capital, Inc., formerly Imperial Holdings, Inc., is a specialty finance company that invests in asset classes, primarily life settlements. The Company, through its subsidiary companies, owns a portfolio of approximately 630 life insurance policies (life settlements). The Company purchases individual policies and portfolios of life insurance policies and manages those assets based on actuarial and market data. The Company provides customized liquidity solutions to owners of illiquid financial assets in two markets, which include life finance and structured settlements. The Company focuses on lending to outright purchases of portfolios, to tertiary trades, as well as individual secondary market purchases. The Company invests in short and long-term life settlement investments.

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