Reviewing Great-West Lifeco (OTCMKTS:GWLIF) and F&G Annuities & Life (NYSE:FG)

F&G Annuities & Life (NYSE:FGGet Free Report) and Great-West Lifeco (OTCMKTS:GWLIFGet Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

F&G Annuities & Life pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Great-West Lifeco pays an annual dividend of $1.23 per share and has a dividend yield of 3.8%. F&G Annuities & Life pays out 74.3% of its earnings in the form of a dividend. Great-West Lifeco pays out 47.2% 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. F&G Annuities & Life has increased its dividend for 2 consecutive years. Great-West Lifeco is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for F&G Annuities & Life and Great-West Lifeco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
F&G Annuities & Life 0 2 0 0 2.00
Great-West Lifeco 0 0 1 0 3.00

F&G Annuities & Life presently has a consensus price target of $38.33, suggesting a potential downside of 15.77%. Great-West Lifeco has a consensus price target of $35.82, suggesting a potential upside of 9.63%. Given Great-West Lifeco’s stronger consensus rating and higher possible upside, analysts clearly believe Great-West Lifeco is more favorable than F&G Annuities & Life.

Profitability

This table compares F&G Annuities & Life and Great-West Lifeco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
F&G Annuities & Life 4.02% 16.80% 0.64%
Great-West Lifeco N/A N/A N/A

Institutional & Insider Ownership

96.5% of F&G Annuities & Life shares are owned by institutional investors. Comparatively, 11.8% of Great-West Lifeco shares are owned by institutional investors. 1.5% of F&G Annuities & Life shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares F&G Annuities & Life and Great-West Lifeco’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
F&G Annuities & Life $2.34 billion 2.44 $481.00 million $1.13 40.27
Great-West Lifeco N/A N/A N/A $2.60 12.54

F&G Annuities & Life has higher revenue and earnings than Great-West Lifeco. Great-West Lifeco is trading at a lower price-to-earnings ratio than F&G Annuities & Life, indicating that it is currently the more affordable of the two stocks.

Summary

F&G Annuities & Life beats Great-West Lifeco on 8 of the 14 factors compared between the two stocks.

About F&G Annuities & Life

(Get Free Report)

F&G Annuities & Life, Inc. provides fixed annuities and life insurance products in the United States. It serves retail annuity and life customers, as well as institutional clients. The company portfolio includes fixed indexed annuities, multi-year guarantee annuities, and pension risk transfer solution, as well as indexed universal life insurance and institutional funding agreements. It serves retail annuity and life customers, as well as institutional clients. The company was founded in 1959 and is headquartered in Des Moines, Iowa. F&G Annuities & Life, Inc. operates as a subsidiary of Fidelity National Financial, Inc.

About Great-West Lifeco

(Get Free Report)

Great-West Lifeco Inc. engages in the life and health insurance, retirement and investment services, asset management, and reinsurance businesses in Canada, the United States, and Europe. The company offers life, accidental death and dismemberment, disability, critical illness, health and dental protection, and creditor insurance products; and retirement and wealth savings, income and annuity products, and other specialty products to individuals, families, businesses, and organizations. It also provides individual product solutions and employer-sponsored retirement savings plans that offers saving, investment, and advisory services; wealth and investment management, and related administrative function and distribution services; and investment products, including equity, fixed-income, absolute return and alternative strategies, hedge fund and other alternative strategies, model-based separately managed accounts, and model portfolios. In addition, the company offers bulk and individual payout annuities, equity release mortgages, life bonds, and retirement drawdown and pension products; savings and investments; and provides asset management services for pension schemes, insurance companies, wealth managers, fiduciary managers, and sovereign wealth funds, as well as third-party institutional clients. Further, it provides life, health, annuity/longevity, mortgage surety, and property catastrophe reinsurance products. The company offers its products under the Canada Life, Irish Life, Empower, Putnam Investments, and PanAgora brand names. It distributes its products through a network of sales force, brokers, consultants, advisors, third-party administrators, financial institutions, dealers, managing general agencies, financial planners, employee benefit consultants, banks, and multi-tied agents. The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. operates as a subsidiary of Power Financial Corporation.

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