Security National Financial (NASDAQ: SNFCA) and National Western Life Group (NASDAQ:NWLI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Dividends

National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Security National Financial does not pay a dividend. National Western Life Group pays out 1.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

8.5% of Security National Financial shares are held by institutional investors. Comparatively, 79.8% of National Western Life Group shares are held by institutional investors. 18.2% of Security National Financial shares are held by insiders. Comparatively, 1.0% of National Western Life Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Security National Financial and National Western Life Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Security National Financial $307.21 million 0.26 $12.18 million $0.44 11.45
National Western Life Group $682.37 million 1.80 $100.89 million $26.70 12.63

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

Analyst Recommendations

This is a breakdown of recent ratings for Security National Financial and National Western Life Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Security National Financial 0 0 0 0 N/A
National Western Life Group 0 0 0 0 N/A

Risk and Volatility

Security National Financial has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, National Western Life Group has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Security National Financial and National Western Life Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Security National Financial 2.37% 5.03% 0.70%
National Western Life Group 11.31% 4.75% 0.70%

Summary

National Western Life Group beats Security National Financial on 9 of the 12 factors compared between the two stocks.

About Security National Financial

Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.

About National Western Life Group

National Western Life Insurance Company (National Western) is a stock life insurance company. The Company operates in two segments: Domestic Insurance Operations and International Insurance Operations. The products marketed under domestic insurance operations are annuities, universal life insurance and traditional life insurance, which include both term and whole life products. National Western’s international operations focus on foreign nationals in upper socioeconomic classes. The Company provides life insurance products for the savings and protection needs of approximately 126,700 policyholders and for the asset accumulation and retirement needs of 139,100 annuity contract holders. National Western offers a portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders.

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