Genworth Financial (GNW) versus Fortegra Financial (FRF) Head to Head Analysis

Genworth Financial (NYSE: GNW) and Fortegra Financial (NYSE:FRF) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Genworth Financial and Fortegra Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 3 1 0 2.25
Fortegra Financial 0 0 0 0 N/A

Genworth Financial currently has a consensus target price of $3.88, indicating a potential upside of 19.97%. Given Genworth Financial’s higher probable upside, research analysts plainly believe Genworth Financial is more favorable than Fortegra Financial.

Risk & Volatility

Genworth Financial has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500. Comparatively, Fortegra Financial has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Valuation and Earnings

This table compares Genworth Financial and Fortegra Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.37 billion 0.19 -$277.00 million $0.71 4.55
Fortegra Financial N/A N/A N/A $0.64 15.58

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

Profitability

This table compares Genworth Financial and Fortegra Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial 3.88% 1.57% 0.22%
Fortegra Financial N/A N/A N/A

Insider & Institutional Ownership

66.7% of Genworth Financial shares are owned by institutional investors. 0.3% of Genworth Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Genworth Financial beats Fortegra Financial on 10 of the 11 factors compared between the two stocks.

About Genworth Financial

Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.

About Fortegra Financial

Fortegra Financial Corporation is specializing in insurance products and services. The Company’s business process outsourcing segment offers various administrative services under the Consecta and Pacific Benefits Group Northwest, LLC brand names to insurance and other financial services companies. The Company’s Payment Protection segment delivers credit insurance, debt protection, warranty and service contracts, and motor club solutions under the Life of the South, Continental Car Club, United Motor Club, and Auto Knight Motor Club brand names to consumer finance companies, regional banks, community banks, retailers, small loan companies, warranty administrators, automobile dealers, vacation ownership developers, and credit unions.

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