Reviewing National Western Life Group (NASDAQ:NWLI) & Jackson Financial (NYSE:JXN)

National Western Life Group (NASDAQ:NWLIGet Rating) and Jackson Financial (NYSE:JXNGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Institutional and Insider Ownership

78.4% of National Western Life Group shares are owned by institutional investors. Comparatively, 81.2% of Jackson Financial shares are owned by institutional investors. 17.3% of National Western Life Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for National Western Life Group and Jackson Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Western Life Group 0 0 0 0 N/A
Jackson Financial 0 4 1 0 2.20

Jackson Financial has a consensus target price of $38.25, suggesting a potential upside of 33.14%. Given Jackson Financial’s higher possible upside, analysts plainly believe Jackson Financial is more favorable than National Western Life Group.

Dividends

National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.2%. Jackson Financial pays an annual dividend of $2.20 per share and has a dividend yield of 7.7%. National Western Life Group pays out 0.8% of its earnings in the form of a dividend. Jackson Financial pays out 8.7% 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.

Profitability

This table compares National Western Life Group and Jackson Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Western Life Group 20.65% 6.05% 1.05%
Jackson Financial 29.79% 20.22% 0.60%

Valuation and Earnings

This table compares National Western Life Group and Jackson Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Western Life Group $824.09 million 0.87 $180.68 million $43.76 4.49
Jackson Financial $8.85 billion 0.28 $3.18 billion $25.16 1.14

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

Summary

Jackson Financial beats National Western Life Group on 8 of the 14 factors compared between the two stocks.

National Western Life Group Company Profile (Get Rating)

National Western Life Group, Inc., through its subsidiary, National Western Life Insurance Company, operates as a stock life insurance company. It operates through Domestic Life Insurance, International Life Insurance, Annuities, and ONL and Affiliates segments. The company provides life products, including universal life insurance, interest-sensitive whole life, and traditional products, such as term insurance coverage; and annuity products comprising flexible premium and single premium deferred annuities, equity-index annuities, and single premium immediate annuities. The company also engages in the real estate and other investment activities. It markets and distributes its insurance products primarily through independent national marketing organizations. The company was founded in 1956 and is based in Austin, Texas.

Jackson Financial Company Profile (Get Rating)

Jackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. This segment also provides a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, banks and other financial institutions, wirehouses and regional broker-dealers, and independent registered investment advisors, third-party platforms, and insurance agents. Jackson Financial Inc. was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. The company was incorporated in 2006 and is headquartered in Lansing, Michigan.

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