Security National Financial (NASDAQ: SNFCA) and Fidelity and Guaranty Life (NYSE:FGL) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Risk & Volatility
Security National Financial has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Fidelity and Guaranty Life has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Fidelity and Guaranty Life pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Security National Financial does not pay a dividend. Fidelity and Guaranty Life pays out 6.8% of its earnings in the form of a dividend.
This table compares Security National Financial and Fidelity and Guaranty Life’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%|
|Fidelity and Guaranty Life||14.02%||11.22%||0.85%|
Earnings & Valuation
This table compares Security National Financial and Fidelity and Guaranty Life’s 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||0.27||$12.18 million||$0.44||11.82|
|Fidelity and Guaranty Life||$1.53 billion||1.20||$223.00 million||$3.82||8.14|
Fidelity and Guaranty Life has higher revenue and earnings than Security National Financial. Fidelity and Guaranty Life is trading at a lower price-to-earnings ratio than Security National Financial, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
8.5% of Security National Financial shares are owned by institutional investors. Comparatively, 20.6% of Fidelity and Guaranty Life shares are owned by institutional investors. 18.2% of Security National Financial shares are owned by insiders. Comparatively, 0.6% of Fidelity and Guaranty Life shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Security National Financial and Fidelity and Guaranty Life, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Security National Financial||0||0||0||0||N/A|
|Fidelity and Guaranty Life||0||1||0||0||2.00|
Fidelity and Guaranty Life has a consensus price target of $26.80, suggesting a potential downside of 13.83%. Given Fidelity and Guaranty Life’s higher possible upside, analysts plainly believe Fidelity and Guaranty Life is more favorable than Security National Financial.
Fidelity and Guaranty Life beats Security National Financial on 11 of the 14 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 Fidelity and Guaranty Life
Fidelity & Guaranty Life (FGL) is a holding company focused on obtaining controlling equity stakes in companies that operate across various industries. FGL’s primary business is the sale of individual life insurance products and annuities through independent agents, managing general agents, and specialty brokerage firms and in selected institutional markets. FGL’s principal products are deferred annuities (including fixed indexed annuity (FIA) contracts), immediate annuities and life insurance products. FGL markets products through its insurance subsidiaries, Fidelity & Guaranty Life Insurance Company (FGL Insurance) and Fidelity & Guaranty Life Insurance Company of New York (FGL NY Insurance). It distributes and services primarily fixed rate annuities, including FIAs. The Company provides FIA’s for pre-retirement wealth accumulation and post-retirement income management. Its life insurance provides wealth protection and transfer opportunities through indexed universal life products.
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