Midwest (NASDAQ:MDWT) versus Primerica (NYSE:PRI) Financial Survey

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

Profitability

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

Net Margins Return on Equity Return on Assets
Midwest N/A -55.50% -4.90%
Primerica 17.66% 22.82% 2.77%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Midwest and Primerica, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midwest 0 1 1 0 2.50
Primerica 0 0 3 0 3.00

Midwest presently has a consensus target price of $76.00, suggesting a potential upside of 78.82%. Primerica has a consensus target price of $166.20, suggesting a potential upside of 2.65%. Given Midwest’s higher possible upside, research analysts plainly believe Midwest is more favorable than Primerica.

Valuation & Earnings

This table compares Midwest and Primerica’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midwest $10.58 million 15.02 -$12.44 million ($4.42) -9.62
Primerica $2.22 billion 2.87 $386.16 million $9.70 16.66

Primerica has higher revenue and earnings than Midwest. Midwest is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

27.9% of Midwest shares are owned by institutional investors. Comparatively, 90.7% of Primerica shares are owned by institutional investors. 30.3% of Midwest shares are owned by company insiders. Comparatively, 0.9% of Primerica shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Primerica beats Midwest on 10 of the 13 factors compared between the two stocks.

Midwest Company Profile

Midwest Holding Inc., a financial services holding company, engages in underwriting and marketing life insurance products in the United States. The company offers multi-year guaranteed and fixed indexed annuity products. It also provides investment advisory and related asset management services to third-party insurers and reinsurers; and a cloud-based policy administration solution for annuity and life insurance products. The company was incorporated in 2003 and is based in Lincoln, Nebraska.

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 loans; ID theft defense services; and insurance products, including supplemental health, 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. It 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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