Fidelity & Guaranty Life (FGL) and Security National Financial (SNFCA) Head-To-Head Survey

Fidelity & Guaranty Life (NYSE: FGL) and Security National Financial (NASDAQ:SNFCA) are both small-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Fidelity & Guaranty Life and Security National Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidelity & Guaranty Life 14.02% 11.22% 0.85%
Security National Financial 2.37% 5.03% 0.70%

Insider and Institutional Ownership

20.6% of Fidelity & Guaranty Life shares are held by institutional investors. Comparatively, 8.5% of Security National Financial shares are held by institutional investors. 0.6% of Fidelity & Guaranty Life shares are held by company insiders. Comparatively, 18.2% of Security National Financial shares are held by company 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 Fidelity & Guaranty Life and Security National Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidelity & Guaranty Life $1.53 billion 1.20 $223.00 million $3.82 8.14
Security National Financial $307.21 million 0.25 $12.18 million $0.32 14.53

Fidelity & Guaranty Life has higher revenue and earnings than Security National Financial. Fidelity & 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.

Volatility & Risk

Fidelity & Guaranty Life has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Security National Financial has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Dividends

Fidelity & 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 & Guaranty Life pays out 6.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fidelity & Guaranty Life and Security National Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidelity & Guaranty Life 0 1 0 0 2.00
Security National Financial 0 0 0 0 N/A

Fidelity & Guaranty Life presently has a consensus price target of $26.80, indicating a potential downside of 13.83%. Given Fidelity & Guaranty Life’s higher probable upside, research analysts clearly believe Fidelity & Guaranty Life is more favorable than Security National Financial.

Summary

Fidelity & Guaranty Life beats Security National Financial on 11 of the 14 factors compared between the two stocks.

About Fidelity & 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.

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.

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