FBL Financial Group (NYSE: FFG) and Genworth Financial (NYSE:GNW) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitabiliy, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Volatility and Risk

FBL Financial Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.67, indicating that its share price is 167% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for FBL Financial Group and Genworth Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FBL Financial Group 1 0 0 0 1.00
Genworth Financial 0 4 1 0 2.20

Genworth Financial has a consensus price target of $4.15, indicating a potential upside of 16.18%. Given Genworth Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Genworth Financial is more favorable than FBL Financial Group.

Profitability

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

Net Margins Return on Equity Return on Assets
FBL Financial Group 15.70% 9.12% 1.16%
Genworth Financial -1.66% -1.63% -0.23%

Dividends

FBL Financial Group pays an annual dividend of $1.76 per share and has a dividend yield of 2.5%. Genworth Financial does not pay a dividend. FBL Financial Group pays out 38.2% of its earnings in the form of a dividend. Genworth Financial has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

29.4% of FBL Financial Group shares are held by institutional investors. Comparatively, 67.0% of Genworth Financial shares are held by institutional investors. 0.6% of FBL Financial Group shares are held by company insiders. Comparatively, 0.3% of Genworth Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares FBL Financial Group and Genworth Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FBL Financial Group $728.67 million 2.38 $173.93 million $4.61 15.08
Genworth Financial $8.76 billion 0.20 $803.25 million ($0.30) -11.90

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

Summary

Genworth Financial beats FBL Financial Group on 9 of the 16 factors compared between the two stocks.

About FBL Financial Group

FBL Financial Group, Inc. sells individual life insurance and annuity products under the brand name of Farm Bureau Financial Services. The Company’s segments are Annuity Segment, which sells a variety of traditional annuity products; Life Insurance Segment, which sells a range of traditional and universal life insurance products, and Corporate and Other segment, which provides various support operations, corporate capital and other product lines. It also offers life and annuity products through its subsidiary, Greenfields Life Insurance Company. Its other subsidiaries support various functional areas and affiliates by providing investment advisory and marketing and distribution services. It manages all aspects of two Farm Bureau affiliated property-casualty insurance companies, Farm Bureau Property & Casualty Insurance Company and Western Agricultural Insurance Company.

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.

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