Horace Mann Educators (NYSE:HMN – Get Free Report) and F&G Annuities & Life (NYSE:FG – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional and Insider Ownership
99.3% of Horace Mann Educators shares are held by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are held by institutional investors. 3.6% of Horace Mann Educators shares are held by insiders. Comparatively, 2.5% of F&G Annuities & Life shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
Horace Mann Educators has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Horace Mann Educators | 0 | 0 | 0 | 3 | 4.00 |
| F&G Annuities & Life | 1 | 3 | 0 | 0 | 1.75 |
Horace Mann Educators presently has a consensus price target of $59.00, indicating a potential upside of 29.68%. F&G Annuities & Life has a consensus price target of $30.00, indicating a potential upside of 37.08%. Given F&G Annuities & Life’s higher probable upside, analysts clearly believe F&G Annuities & Life is more favorable than Horace Mann Educators.
Dividends
Horace Mann Educators pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Horace Mann Educators pays out 33.6% of its earnings in the form of a dividend. F&G Annuities & Life pays out 34.1% 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. Horace Mann Educators has raised its dividend for 17 consecutive years and F&G Annuities & Life has raised its dividend for 2 consecutive years.
Profitability
This table compares Horace Mann Educators and F&G Annuities & Life’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Horace Mann Educators | 10.15% | 14.08% | 1.35% |
| F&G Annuities & Life | 6.89% | 10.28% | 0.50% |
Valuation & Earnings
This table compares Horace Mann Educators and F&G Annuities & Life”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Horace Mann Educators | $1.70 billion | 1.08 | $162.10 million | $4.28 | 10.63 |
| F&G Annuities & Life | $5.73 billion | 0.50 | $265.00 million | $2.93 | 7.47 |
F&G Annuities & Life has higher revenue and earnings than Horace Mann Educators. F&G Annuities & Life is trading at a lower price-to-earnings ratio than Horace Mann Educators, indicating that it is currently the more affordable of the two stocks.
Summary
Horace Mann Educators beats F&G Annuities & Life on 12 of the 17 factors compared between the two stocks.
About Horace Mann Educators
Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States. The company operates through Property & Casualty, Life & Retirement, and Supplemental & Group Benefits segments. Its Property & Casualty segment offers insurance products, including private passenger auto insurance, residential home insurance, and personal umbrella insurance; and provides auto coverages including liability and collision, and property coverage for homeowners and renters. The Life & Retirement segment markets tax-qualified fixed, fixed indexed, and variable annuities; and internal revenue code for educator, which allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan. The Supplemental & Group Benefits segment offers employer-sponsored products including accident, critical illness, limited-benefit fixed indemnity insurance, term life, and short-term and long-term disability, as well as worksite direct products, such as supplemental heart, cancer, disability, and accident coverage. The company was founded in 1945 and is headquartered in Springfield, Illinois.
About F&G Annuities & Life
F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.
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