Aviva Plc (NYSE: AV) and Fidelity and Guaranty Life (NYSE:FGL) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Aviva Plc and Fidelity and Guaranty Life, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviva Plc 0 1 1 0 2.50
Fidelity and Guaranty Life 0 2 0 0 2.00

Fidelity and Guaranty Life has a consensus target price of $26.40, suggesting a potential downside of 15.25%. Given Fidelity and Guaranty Life’s higher possible upside, analysts clearly believe Fidelity and Guaranty Life is more favorable than Aviva Plc.

Earnings & Valuation

This table compares Aviva Plc and Fidelity and Guaranty Life’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aviva Plc N/A N/A N/A N/A N/A
Fidelity and Guaranty Life $1.41 billion 1.29 $550.00 million $3.29 9.47

Fidelity and Guaranty Life has higher revenue and earnings than Aviva Plc.

Profitability

This table compares Aviva Plc and Fidelity and Guaranty Life’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviva Plc N/A N/A N/A
Fidelity and Guaranty Life 13.61% 8.00% 0.55%

Risk & Volatility

Aviva Plc has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Fidelity and Guaranty Life has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Insider & Institutional Ownership

0.8% of Aviva Plc shares are owned by institutional investors. Comparatively, 23.4% of Fidelity and Guaranty Life shares are owned by institutional investors. 0.6% of Fidelity and Guaranty Life shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Aviva Plc pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. Fidelity and Guaranty Life pays an annual dividend of $0.26 per share and has a dividend yield of 0.8%. Fidelity and Guaranty Life pays out 7.9% of its earnings in the form of a dividend. Fidelity and Guaranty Life has increased its dividend for 3 consecutive years.

Summary

Fidelity and Guaranty Life beats Aviva Plc on 8 of the 13 factors compared between the two stocks.

About Aviva Plc

Aviva plc is a holding company. The Company provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Its segments include United Kingdom & Ireland; France; Poland; Italy, Spain and Other; Canada; Asia; Aviva Investors, and Other Group activities. The United Kingdom and Ireland segment consists of two operating segments: Life and General Insurance. The principal activities of its French operations are long-term business and general insurance. Its Poland Activities in Poland consist of long-term business and general insurance operations. Its Italian operations are long-term business and general insurance. The principal activity of the Canadian operation is general insurance. Its activities in Asia consist of its long-term business operations in China, India, Singapore, Hong Kong, Vietnam, Indonesia, Taiwan and international operations. The Aviva Investors segment offers a range of asset management services.

About Fidelity and Guaranty Life

Fidelity & Guaranty Life (FGL) is a holding company focused on obtaining controlling equity stakes in companies that operate across various industries. FGL’s primary business is the sale of individual life insurance products and annuities through independent agents, managing general agents, and specialty brokerage firms and in selected institutional markets. FGL’s principal products are deferred annuities (including fixed indexed annuity (FIA) contracts), immediate annuities and life insurance products. FGL markets products through its insurance subsidiaries, Fidelity & Guaranty Life Insurance Company (FGL Insurance) and Fidelity & Guaranty Life Insurance Company of New York (FGL NY Insurance). It distributes and services primarily fixed rate annuities, including FIAs. The Company provides FIA’s for pre-retirement wealth accumulation and post-retirement income management. Its life insurance provides wealth protection and transfer opportunities through indexed universal life products.

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