Analyzing Symetra Financial (SYA) and GWG (GWGH)

Symetra Financial (NYSE: SYA) and GWG (NASDAQ:GWGH) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Valuation and Earnings

This table compares Symetra Financial and GWG’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Symetra Financial N/A N/A N/A $1.36 23.54
GWG $69.48 million 0.73 $390,000.00 ($3.49) -2.50

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

Dividends

Symetra Financial pays an annual dividend of $0.44 per share and has a dividend yield of 1.4%. GWG does not pay a dividend. Symetra Financial pays out 32.4% of its earnings in the form of a dividend. Symetra Financial has increased its dividend for 7 consecutive years.

Profitability

This table compares Symetra Financial and GWG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Symetra Financial 3.63% 2.50% 0.23%
GWG -28.93% -121.72% 3.59%

Institutional & Insider Ownership

50.8% of GWG shares are owned by institutional investors. 77.4% of GWG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Symetra Financial and GWG, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Symetra Financial 0 0 0 0 N/A
GWG 0 0 2 0 3.00

GWG has a consensus price target of $14.50, indicating a potential upside of 66.48%. Given GWG’s higher probable upside, analysts clearly believe GWG is more favorable than Symetra Financial.

Summary

GWG beats Symetra Financial on 7 of the 13 factors compared between the two stocks.

Symetra Financial Company Profile

Symetra Financial Corporation is a financial services company in the life insurance industry. The Company’s products are distributed domestically in all states and the District of Columbia through benefits consultants, financial institutions, broker-dealers and independent agents and advisers. It has three divisions: Benefits Division, Retirement Division and Individual Life Division. The Company’s Benefits Division provides medical stop-loss insurance, group life and disability income (DI) insurance, and limited benefit medical insurance as its principal products. The Company’s Retirement Division provides products that help its customers prepare for retirement and includes the Deferred Annuities and Income Annuities segments. The Company’s Individual Life division sells life insurance products.

GWG Company Profile

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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