Emergent Capital (OTCMKTS:EMGC) and Lincoln National (NYSE:LNC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Profitability

This table compares Emergent Capital and Lincoln National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emergent Capital N/A -1.15% -0.34%
Lincoln National 13.14% 11.61% 0.63%

Insider and Institutional Ownership

0.3% of Emergent Capital shares are held by institutional investors. Comparatively, 80.5% of Lincoln National shares are held by institutional investors. 33.3% of Emergent Capital shares are held by insiders. Comparatively, 1.1% of Lincoln National shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Emergent Capital has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Lincoln National has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500.

Dividends

Lincoln National pays an annual dividend of $1.48 per share and has a dividend yield of 2.7%. Emergent Capital does not pay a dividend. Lincoln National pays out 19.0% of its earnings in the form of a dividend. Lincoln National has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Emergent Capital and Lincoln National’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Emergent Capital $51.87 million 0.18 -$3.50 million N/A N/A
Lincoln National $14.59 billion 0.81 $2.08 billion $7.79 7.09

Lincoln National has higher revenue and earnings than Emergent Capital.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Emergent Capital and Lincoln National, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emergent Capital 0 0 0 0 N/A
Lincoln National 0 6 6 0 2.50

Lincoln National has a consensus target price of $76.17, indicating a potential upside of 37.88%. Given Lincoln National’s higher possible upside, analysts clearly believe Lincoln National is more favorable than Emergent Capital.

Summary

Lincoln National beats Emergent Capital on 12 of the 14 factors compared between the two stocks.

About Emergent Capital

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of December 31, 2017, it owned a portfolio of 608 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. Emergent Capital, Inc. was founded in 2006 and is based in Boca Raton, Florida.

About Lincoln National

Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The company sells a range of wealth protection, accumulation, and retirement income products and solutions. The company's products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, indexed universal life insurance, and employer-sponsored retirement plans and services, as well as group life, disability, and dental products. It also provides various plan investment vehicles, including individual and group variable annuities, group fixed annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL insurance products; and group non-medical insurance products, such as term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.

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