Analyzing FG Nexus (NASDAQ:FGNX) and Allied World Assurance (OTCMKTS:AWHHF)

Allied World Assurance (OTCMKTS:AWHHF) and FG Nexus (NASDAQ:FGNX) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

86.5% of Allied World Assurance shares are owned by institutional investors. Comparatively, 3.1% of FG Nexus shares are owned by institutional investors. 3.2% of Allied World Assurance shares are owned by insiders. Comparatively, 38.2% of FG Nexus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Allied World Assurance and FG Nexus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied World Assurance	N/A	N/A	N/A	N/A	N/A
FG Nexus	$17.35 million	0.26	-$1.15 million	($8.66)	-0.39

Allied World Assurance has higher earnings, but lower revenue than FG Nexus.

Profitability

This table compares Allied World Assurance and FG Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied World Assurance	N/A	N/A	N/A
FG Nexus	N/A	-30.02%	-14.24%

Analyst Recommendations

This is a breakdown of recent recommendations for Allied World Assurance and FG Nexus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied World Assurance	0	0	0	0	0.00
FG Nexus	1	1	2	0	2.25

FG Nexus has a consensus price target of $8.00, suggesting a potential upside of 134.60%. Given FG Nexus’ stronger consensus rating and higher possible upside, analysts clearly believe FG Nexus is more favorable than Allied World Assurance.

Summary

FG Nexus beats Allied World Assurance on 5 of the 8 factors compared between the two stocks.

About Allied World Assurance

Allied World Assurance Company Holdings Ltd is a Germany-based holding company. It provides property, casualty and specialty insurance and reinsurance solutions to clients around the world. The Company operates in three segments: North American Insurance, Global Markets Insurance and Reinsurance. The North American Insurance segment consists of the Company’s direct insurance operations in the United States, Bermuda and Canada. The Global Markets Insurance segment includes all of the Company’s direct insurance operations outside of North America. The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverage’s written by other reinsurance companies. The Company leases space in Australia, Bermuda, Canada, Hong Kong, Ireland, Labuan, Singapore, the United Kingdom and the United States for the operation of its North American Insurance, Global Markets Insurance and Reinsurance segments.

About FG Nexus

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.