National Western Life (NASDAQ: NWLI) 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.
Earnings & Valuation
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This table compares National Western Life and Brighthouse Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Western Life||$874.45 million||1.22||$110.42 million||N/A||N/A|
|Brighthouse Financial||$6.84 billion||0.84||-$378.00 million||N/A||N/A|
National Western Life has higher earnings, but lower revenue than Brighthouse Financial.
National Western Life pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Brighthouse Financial does not pay a dividend.
This is a summary of current recommendations and price targets for National Western Life and Brighthouse Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Western Life||0||0||0||0||N/A|
Brighthouse Financial has a consensus target price of $63.13, suggesting a potential upside of 31.25%. Given Brighthouse Financial’s higher possible upside, analysts clearly believe Brighthouse Financial is more favorable than National Western Life.
Insider and Institutional Ownership
80.1% of National Western Life shares are held by institutional investors. Comparatively, 84.9% of Brighthouse Financial shares are held by institutional investors. 1.0% of National Western Life shares are held by insiders. Comparatively, 0.0% 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 table compares National Western Life and Brighthouse Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Western Life||12.27%||5.52%||0.82%|
National Western Life beats Brighthouse Financial on 6 of the 11 factors compared between the two stocks.
About National Western Life
National Western Life Group, Inc., through its subsidiary, National Western Life Insurance Company, operates as a stock life insurance company. It operates through Domestic Life Insurance, International Life Insurance, and Annuities segments. The company provides life insurance products for the savings and protection needs of policyholders; and annuity contracts for the asset accumulation and retirement needs of contract holders. Its life products include universal life insurance, interest-sensitive whole life insurance, and traditional products comprising term insurance coverage; and annuity products, such as flexible premium and single premium deferred annuities, equity-index annuities, and single premium immediate annuities. The company also engages in real estate, nursing home, and other investment activities. National Western Life Group, Inc. markets and distributes its insurance products primarily through independent national marketing organizations. The company was founded in 1956 and is based in Austin, Texas.
About Brighthouse Financial
Brighthouse Financial, Inc. provides a range of annuity and life insurance products in the United States. The company operates through three segments: Annuities, Life, and Run-off. It 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; and term, whole, universal, and variable life insurance products for policyholders' needs for financial security and protected wealth transfer. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.