Independence (NYSE:IHC) and Brighthouse Financial (NASDAQ:BHF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
This table compares Independence and Brighthouse Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Independence pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Brighthouse Financial does not pay a dividend. Independence has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
18.7% of Independence shares are held by institutional investors. Comparatively, 92.6% of Brighthouse Financial shares are held by institutional investors. 7.0% of Independence shares are held by insiders. Comparatively, 0.2% of Brighthouse Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Independence and Brighthouse Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Brighthouse Financial has a consensus target price of $37.00, suggesting a potential upside of 3.93%. Given Brighthouse Financial’s higher possible upside, analysts clearly believe Brighthouse Financial is more favorable than Independence.
Valuation & Earnings
This table compares Independence and Brighthouse Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Independence||$350.77 million||1.60||$28.48 million||N/A||N/A|
|Brighthouse Financial||$8.97 billion||0.44||$865.00 million||$7.44||4.78|
Brighthouse Financial has higher revenue and earnings than Independence.
Risk & Volatility
Independence has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Brighthouse Financial has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
Brighthouse Financial beats Independence on 7 of the 13 factors compared between the two stocks.
Independence Company Profile
Independence Holding Company, through its subsidiaries, engages in life and health insurance business. The company's dental portfolio includes indemnity and PPO plans for employer groups of two or more lives, and for individuals within affinity groups; vision plans that offer a flat reimbursement amount for exams and materials; and short-term medical products for people with temporary needs for health coverage. It also provides supplemental products, including hospital indemnity, fixed indemnity limited benefit, critical illness, accident medical coverage, and life insurance products to individuals and families; and pet insurance and occupational accident insurance products. In addition, the company offers group long-term and short-term disability products to employers that provide benefit to their employees; New York short-term disability plan that offers temporary cash payments to replace wages lost; and group term life products, such as group term life, accidental death and dismemberment (AD&D), supplemental life and AD&D, and dependent life products. Independence Holding Company markets its products through general agents, independent brokers, and independent producers in 50 states of the United States, the District of Columbia, the Virgin Islands, and Puerto Rico. The company was founded in 1980 and is headquartered in Stamford, Connecticut.
Brighthouse Financial Company Profile
Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment consist of term, universal, whole, and variable life products for policyholders' needs for financial security and protected wealth transfer. The Run-off segment provides structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.
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