Old Republic International (NYSE:ORI – Get Free Report) and F&G Annuities & Life (NYSE:FG – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Profitability
This table compares Old Republic International and F&G Annuities & Life’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Old Republic International | 11.71% | 15.41% | 3.10% |
| F&G Annuities & Life | 6.89% | 10.28% | 0.50% |
Dividends
Old Republic International pays an annual dividend of $1.26 per share and has a dividend yield of 3.3%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 4.5%. Old Republic International pays out 29.8% of its earnings in the form of a dividend. F&G Annuities & Life pays out 34.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Old Republic International has increased its dividend for 45 consecutive years and F&G Annuities & Life has increased its dividend for 2 consecutive years.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Old Republic International | 0 | 2 | 1 | 0 | 2.33 |
| F&G Annuities & Life | 1 | 3 | 0 | 0 | 1.75 |
Old Republic International currently has a consensus price target of $41.50, indicating a potential upside of 9.96%. F&G Annuities & Life has a consensus price target of $30.00, indicating a potential upside of 35.70%. Given F&G Annuities & Life’s higher possible upside, analysts clearly believe F&G Annuities & Life is more favorable than Old Republic International.
Insider and Institutional Ownership
70.9% of Old Republic International shares are owned by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are owned by institutional investors. 1.3% of Old Republic International shares are owned by company insiders. Comparatively, 2.5% of F&G Annuities & Life shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Old Republic International has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Valuation & Earnings
This table compares Old Republic International and F&G Annuities & Life”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Old Republic International | $9.14 billion | 1.00 | $935.40 million | $4.23 | 8.92 |
| F&G Annuities & Life | $5.70 billion | 0.51 | $265.00 million | $2.93 | 7.55 |
Old Republic International has higher revenue and earnings than F&G Annuities & Life. F&G Annuities & Life is trading at a lower price-to-earnings ratio than Old Republic International, indicating that it is currently the more affordable of the two stocks.
Summary
Old Republic International beats F&G Annuities & Life on 12 of the 17 factors compared between the two stocks.
About Old Republic International
Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.
About F&G Annuities & Life
F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.
Receive News & Ratings for Old Republic International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Old Republic International and related companies with MarketBeat.com's FREE daily email newsletter.
