Genworth Financial (NYSE: GNW) and FBL Financial Group (NYSE:FFG) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitabiliy, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Genworth Financial and FBL Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 6 1 0 2.14
FBL Financial Group 1 0 0 0 1.00

Genworth Financial presently has a consensus target price of $4.15, indicating a potential upside of 16.18%. Given Genworth Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Genworth Financial is more favorable than FBL Financial Group.

Earnings & Valuation

This table compares Genworth Financial and FBL Financial Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.76 billion 0.20 $803.25 million ($0.36) -9.92
FBL Financial Group $728.67 million 2.22 $173.93 million $4.29 15.16

Genworth Financial has higher revenue and earnings than FBL Financial Group. Genworth Financial is trading at a lower price-to-earnings ratio than FBL Financial Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Genworth Financial and FBL Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial -2.00% -1.75% -0.26%
FBL Financial Group 14.78% 8.65% 1.11%

Insider & Institutional Ownership

66.9% of Genworth Financial shares are held by institutional investors. Comparatively, 29.3% of FBL Financial Group shares are held by institutional investors. 0.3% of Genworth Financial shares are held by company insiders. Comparatively, 0.6% of FBL Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

FBL Financial Group pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Genworth Financial does not pay a dividend. FBL Financial Group pays out 41.0% of its earnings in the form of a dividend. FBL Financial Group has raised its dividend for 4 consecutive years.

Risk & Volatility

Genworth Financial has a beta of 2.69, indicating that its share price is 169% more volatile than the S&P 500. Comparatively, FBL Financial Group has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

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.

About FBL Financial Group

FBL Financial Group, Inc. sells individual life insurance and annuity products under the brand name of Farm Bureau Financial Services. The Company’s segments are Annuity Segment, which sells a variety of traditional annuity products; Life Insurance Segment, which sells a range of traditional and universal life insurance products, and Corporate and Other segment, which provides various support operations, corporate capital and other product lines. It also offers life and annuity products through its subsidiary, Greenfields Life Insurance Company. Its other subsidiaries support various functional areas and affiliates by providing investment advisory and marketing and distribution services. It manages all aspects of two Farm Bureau affiliated property-casualty insurance companies, Farm Bureau Property & Casualty Insurance Company and Western Agricultural Insurance Company.

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