Vericity (VERY) and Its Rivals Critical Survey

Vericity (NASDAQ:VERY) is one of 40 public companies in the “Life insurance” industry, but how does it contrast to its competitors? We will compare Vericity to similar companies based on the strength of its profitability, earnings, dividends, risk, analyst recommendations, institutional ownership and valuation.

Insider and Institutional Ownership

1.9% of Vericity shares are held by institutional investors. Comparatively, 56.7% of shares of all “Life insurance” companies are held by institutional investors. 10.4% of Vericity shares are held by insiders. Comparatively, 12.3% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Vericity has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Vericity’s competitors have a beta of 0.84, suggesting that their average stock price is 16% less volatile than the S&P 500.

Profitability

This table compares Vericity and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vericity	-5.57%	-9.13%	-1.23%
Vericity Competitors	6.37%	13.03%	0.96%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Vericity and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vericity	0	0	0	0	N/A
Vericity Competitors	329	2237	2009	69	2.39

As a group, “Life insurance” companies have a potential upside of 59.46%. Given Vericity’s competitors higher possible upside, analysts clearly believe Vericity has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Vericity and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vericity	$177.57 million	-$9.89 million	-16.71
Vericity Competitors	$21.55 billion	$1.31 billion	-23,250.28

Vericity’s competitors have higher revenue and earnings than Vericity. Vericity is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Vericity competitors beat Vericity on 9 of the 10 factors compared.

Vericity Company Profile

Vericity, Inc., together with its subsidiaries, provides life insurance protection products for the middle American market. The company operates through Agency and Insurance segments. The Agency segment sells life insurance products for unaffiliated insurance companies through its call center distribution platform, as well as through its independent agents and other marketing organizations. This segment is also involved in the insurance lead sale activities through its eCoverage web presence. The Insurance segment provides term life, accidental death, and final expense products. Vericity, Inc. is headquartered in Chicago, Illinois. Vericity, Inc.