Primerica (NYSE:PRI) and UTG (OTCMKTS:UTGN) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Volatility & Risk
Primerica has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, UTG has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.
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 increased its dividend for 8 consecutive years.
Valuation & Earnings
This table compares Primerica and UTG’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primerica||$1.90 billion||2.75||$324.09 million||$7.33||16.83|
|UTG||$41.27 million||2.39||$12.39 million||N/A||N/A|
Primerica has higher revenue and earnings than UTG.
This is a summary of current ratings and target prices for Primerica and UTG, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Primerica presently has a consensus price target of $121.50, indicating a potential downside of 1.54%. Given Primerica’s higher probable upside, analysts clearly believe Primerica is more favorable than UTG.
Insider and Institutional Ownership
91.3% of Primerica shares are held by institutional investors. 0.8% of Primerica shares are held by company insiders. Comparatively, 69.8% of UTG shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Primerica and UTG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Primerica beats UTG on 11 of the 14 factors compared between the two stocks.
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.
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.
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