Tiptree Financial (NASDAQ:TIPT – Get Free Report) and F&G Annuities & Life (NYSE:FG – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Dividends
Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 5.1%. Tiptree Financial pays out 2.2% 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. Tiptree Financial has raised its dividend for 2 consecutive years and F&G Annuities & Life has raised its dividend for 2 consecutive years.
Risk and Volatility
Tiptree Financial has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Institutional & Insider Ownership
37.8% of Tiptree Financial shares are owned by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are owned by institutional investors. 31.9% of Tiptree Financial 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Tiptree Financial and F&G Annuities & Life”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tiptree Financial | $490,000.00 | 1,250.96 | $34.93 million | $10.81 | 1.52 |
| F&G Annuities & Life | $5.70 billion | 0.45 | $265.00 million | $2.93 | 6.68 |
F&G Annuities & Life has higher revenue and earnings than Tiptree Financial. Tiptree Financial is trading at a lower price-to-earnings ratio than F&G Annuities & Life, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tiptree Financial and F&G Annuities & Life’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tiptree Financial | N/A | 0.75% | 0.11% |
| F&G Annuities & Life | 6.89% | 10.28% | 0.50% |
Analyst Recommendations
This is a summary of current ratings for Tiptree Financial and F&G Annuities & Life, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tiptree Financial | 0 | 1 | 0 | 0 | 2.00 |
| F&G Annuities & Life | 2 | 2 | 0 | 0 | 1.50 |
F&G Annuities & Life has a consensus target price of $24.00, indicating a potential upside of 22.54%. Given F&G Annuities & Life’s higher possible upside, analysts plainly believe F&G Annuities & Life is more favorable than Tiptree Financial.
Summary
F&G Annuities & Life beats Tiptree Financial on 10 of the 15 factors compared between the two stocks.
About Tiptree Financial
Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.
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.
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