SelectQuote (NYSE:SLQT – Get Free Report) and Assured Guaranty (NYSE:AGO – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.
Institutional & Insider Ownership
34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 92.2% of Assured Guaranty shares are owned by institutional investors. 13.1% of SelectQuote shares are owned by insiders. Comparatively, 5.7% of Assured Guaranty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
SelectQuote has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Assured Guaranty has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SelectQuote | $1.53 billion | 0.12 | $47.58 million | $0.09 | 11.61 |
| Assured Guaranty | $1.11 billion | 3.15 | $503.00 million | $8.71 | 9.06 |
Assured Guaranty has lower revenue, but higher earnings than SelectQuote. Assured Guaranty is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SelectQuote and Assured Guaranty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SelectQuote | 5.60% | 20.49% | 5.58% |
| Assured Guaranty | 40.45% | 6.98% | 3.25% |
Analyst Ratings
This is a summary of current ratings and target prices for SelectQuote and Assured Guaranty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SelectQuote | 1 | 1 | 0 | 2 | 2.75 |
| Assured Guaranty | 0 | 2 | 3 | 0 | 2.60 |
SelectQuote presently has a consensus price target of $3.00, indicating a potential upside of 187.08%. Assured Guaranty has a consensus price target of $92.33, indicating a potential upside of 17.06%. Given SelectQuote’s stronger consensus rating and higher probable upside, research analysts plainly believe SelectQuote is more favorable than Assured Guaranty.
Summary
SelectQuote beats Assured Guaranty on 9 of the 15 factors compared between the two stocks.
About SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
About Assured Guaranty
Assured Guaranty Ltd., together with its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. It operates through two segments: Insurance and Asset Management. The company offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It insures and reinsures various debt obligations, including bonds issued by the United States state governmental authorities; and notes issued to finance infrastructure projects. In addition, the company insures and reinsures various the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds. Further, the company involved in insuring and reinsuring of non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, life insurance transactions, consumer receivables securities, subscription finance facilities, pooled corporate obligations, and financial products. Additionally, it offers specialty business, such as real estate properties, insurance securitizations, and aircraft residual value insurance (RVI) transactions; and asset management services comprising investment advisory services. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was incorporated in 2003 and is headquartered in Hamilton, Bermuda.
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