Emergent Capital (OTCMKTS: EMGC) and National Western Life Group (NASDAQ:NWLI) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
0.3% of Emergent Capital shares are held by institutional investors. Comparatively, 79.7% of National Western Life Group shares are held by institutional investors. 33.3% of Emergent Capital 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Emergent Capital does not pay a dividend. National Western Life Group pays out 1.3% of its earnings in the form of a dividend.
This table compares Emergent Capital and National Western Life Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Western Life Group||11.31%||4.75%||0.70%|
Volatility and Risk
Emergent Capital has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, National Western Life Group has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Valuation & Earnings
This table compares Emergent Capital and National Western Life Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Emergent Capital||$1.12 million||59.86||-$49.68 million||($0.98)||-0.44|
|National Western Life Group||$682.37 million||1.77||$100.89 million||$26.70||12.46|
National Western Life Group has higher revenue and earnings than Emergent Capital. Emergent Capital 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.
This is a breakdown of recent ratings and price targets for Emergent Capital and National Western Life Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Western Life Group||0||0||0||0||N/A|
National Western Life Group beats Emergent Capital on 10 of the 14 factors compared between the two stocks.
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.
National Western Life Group Company Profile
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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