Head-To-Head Analysis: UTG (OTCMKTS:UTGN) versus Primerica (OTCMKTS:PRI)

UTG (OTCMKTS:UTGN) and Primerica (NYSE:PRI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

89.7% of Primerica shares are held by institutional investors. 67.3% of UTG shares are held by company insiders. Comparatively, 0.8% of Primerica 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.

Risk & Volatility

UTG has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500. Comparatively, Primerica has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Dividends

Primerica pays an annual dividend of $1.36 per share and has a dividend yield of 1.1%. UTG does not pay a dividend. Primerica pays out 18.6% of its earnings in the form of a dividend. Primerica has raised its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for UTG and Primerica, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UTG 0 0 0 0 N/A
Primerica 1 2 1 0 2.00

Primerica has a consensus target price of $121.50, indicating a potential upside of 0.47%. Given Primerica’s higher probable upside, analysts plainly believe Primerica is more favorable than UTG.

Earnings and Valuation

This table compares UTG and Primerica’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UTG $41.27 million 2.49 $12.39 million N/A N/A
Primerica $1.90 billion 2.70 $324.09 million $7.33 16.50

Primerica has higher revenue and earnings than UTG.

Profitability

This table compares UTG and Primerica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UTG 48.75% 18.44% 5.24%
Primerica 17.44% 22.89% 2.62%

Summary

Primerica beats UTG on 10 of the 14 factors compared between the two stocks.

UTG Company Profile

UTG, Inc., an insurance holding company, provides individual life insurance products and services in the United States. Its individual life insurance includes servicing of existing insurance business in-force; the acquisition of other companies in the insurance business; and the administration processing of life insurance business for other entities. The company also offers reinsurance products. The company was founded in 1984 and is headquartered in Stanford, Kentucky.

Primerica Company Profile

Primerica, Inc., together with its subsidiaries, provides financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. It underwrites individual term life insurance products. The company also provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities, and segregated funds. In addition, it offers auto and homeowners' insurance, home automation solutions, and mortgage loan referrals; ID theft defense services; and insurance products, including supplemental medical and dental, accidental death, and disability for small businesses. Further, the company provides prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

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