Financial Survey: Primerica (NYSE:PRI) vs. Fidelis Insurance (NYSE:FIHL)

Primerica (NYSE:PRI) and Fidelis Insurance (NYSE:FIHL) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares Primerica and Fidelis Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primerica	23.20%	32.45%	5.35%
Fidelis Insurance	9.02%	8.62%	1.62%

Volatility & Risk

Primerica has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Earnings and Valuation

This table compares Primerica and Fidelis Insurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primerica	$3.29 billion	2.79	$751.23 million	$24.90	12.00
Fidelis Insurance	$2.17 billion	1.11	$225.50 million	$2.21	11.29

Primerica has higher revenue and earnings than Fidelis Insurance. Fidelis Insurance is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Primerica and Fidelis Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primerica	0	6	3	0	2.33
Fidelis Insurance	2	3	3	0	2.12

Primerica presently has a consensus target price of $315.57, indicating a potential upside of 5.62%. Fidelis Insurance has a consensus target price of $21.92, indicating a potential downside of 12.16%. Given Primerica’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Primerica is more favorable than Fidelis Insurance.

Institutional and Insider Ownership

90.9% of Primerica shares are owned by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are owned by institutional investors. 0.6% of Primerica shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Primerica pays an annual dividend of $4.80 per share and has a dividend yield of 1.6%. Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. Primerica pays out 19.3% of its earnings in the form of a dividend. Fidelis Insurance pays out 27.1% 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. Primerica has raised its dividend for 2 consecutive years.

Summary

Primerica beats Fidelis Insurance on 15 of the 16 factors compared between the two stocks.

About Primerica

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.