Heritage Insurance (NYSE:HRTG – Get Free Report) and F&G Annuities & Life (NYSE:FG – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Heritage Insurance and F&G Annuities & Life, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heritage Insurance | 0 | 3 | 3 | 0 | 2.50 |
| F&G Annuities & Life | 2 | 2 | 0 | 0 | 1.50 |
Heritage Insurance presently has a consensus target price of $37.50, suggesting a potential upside of 4.27%. F&G Annuities & Life has a consensus target price of $24.00, suggesting a potential upside of 10.96%. Given F&G Annuities & Life’s higher probable upside, analysts clearly believe F&G Annuities & Life is more favorable than Heritage Insurance.
Volatility & Risk
Heritage Insurance has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Institutional & Insider Ownership
59.0% of Heritage Insurance shares are owned by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are owned by institutional investors. 9.2% of Heritage Insurance 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Heritage Insurance and F&G Annuities & Life”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heritage Insurance | $788.51 million | 1.36 | $195.59 million | $7.11 | 5.06 |
| F&G Annuities & Life | $5.73 billion | 0.49 | $265.00 million | $2.93 | 7.38 |
F&G Annuities & Life has higher revenue and earnings than Heritage Insurance. Heritage Insurance 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 Heritage Insurance and F&G Annuities & Life’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heritage Insurance | 25.07% | 40.67% | 9.72% |
| F&G Annuities & Life | 6.89% | 10.28% | 0.50% |
Dividends
Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Heritage Insurance pays out 3.4% 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. F&G Annuities & Life has increased its dividend for 2 consecutive years. F&G Annuities & Life is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Heritage Insurance beats F&G Annuities & Life on 9 of the 17 factors compared between the two stocks.
About Heritage Insurance
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance. It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships. Further, it offers personal and commercial insurance policies through a network of independent agencies. The company was founded in 2012 and is headquartered in Tampa, Florida.
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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