Critical Review: Genworth Financial (GNW) and Its Competitors
Genworth Financial (NYSE: GNW) is one of 24 public companies in the “Multiline Insurance & Brokers” industry, but how does it weigh in compared to its rivals? We will compare Genworth Financial to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.
Risk and Volatility
Genworth Financial has a beta of 2.8, suggesting that its stock price is 180% more volatile than the S&P 500. Comparatively, Genworth Financial’s rivals have a beta of 1.36, suggesting that their average stock price is 36% more volatile than the S&P 500.
Insider & Institutional Ownership
67.9% of Genworth Financial shares are held by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are held by institutional investors. 0.3% of Genworth Financial shares are held by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are held 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.
This is a summary of recent ratings for Genworth Financial and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Genworth Financial Competitors||112||796||844||21||2.44|
Genworth Financial presently has a consensus price target of $3.88, indicating a potential upside of 8.54%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.10%. Given Genworth Financial’s higher probable upside, equities research analysts plainly believe Genworth Financial is more favorable than its rivals.
This table compares Genworth Financial and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Genworth Financial Competitors||3.80%||9.18%||2.33%|
Valuation and Earnings
This table compares Genworth Financial and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Genworth Financial||$8.37 billion||-$277.00 million||5.33|
|Genworth Financial Competitors||$11.13 billion||$534.17 million||145.79|
Genworth Financial’s rivals have higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Genworth Financial rivals beat Genworth Financial on 9 of the 13 factors compared.
About Genworth Financial
Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.
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