Primerica (NYSE: PRI) and American National Ins (NASDAQ:ANAT) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
This table compares Primerica and American National Ins’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American National Ins||14.47%||3.53%||0.68%|
Primerica has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, American National Ins has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.
Earnings and Valuation
This table compares Primerica and American National Ins’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primerica||$1.69 billion||2.52||$350.25 million||$5.52||17.38|
|American National Ins||$3.41 billion||0.92||$493.65 million||N/A||N/A|
American National Ins has higher revenue and earnings than Primerica.
Institutional & Insider Ownership
91.5% of Primerica shares are owned by institutional investors. Comparatively, 66.1% of American National Ins shares are owned by institutional investors. 0.9% of Primerica shares are owned by company insiders. Comparatively, 23.5% of American National Ins 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.
Primerica pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. American National Ins pays an annual dividend of $3.28 per share and has a dividend yield of 2.8%. Primerica pays out 18.1% of its earnings in the form of a dividend. Primerica has increased its dividend for 7 consecutive years.
This is a summary of current ratings and target prices for Primerica and American National Ins, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American National Ins||0||0||0||0||N/A|
Primerica currently has a consensus target price of $103.00, suggesting a potential upside of 7.35%. Given Primerica’s higher probable upside, equities research analysts plainly believe Primerica is more favorable than American National Ins.
Primerica Inc. (Primerica) is a distributor of financial products to middle-income households in the United States and Canada. The Company operates through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries. The Investment and Savings Products segment includes retail and managed mutual funds, and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds, an individual annuity savings product that it underwrites in Canada through Primerica Life Insurance Company of Canada (Primerica Life Canada). In the United States, it distributes mutual fund and annuity products of various third-party companies. It also earns fees for account servicing on a subset of the mutual funds it distributes.
About American National Ins
American National Insurance Company, together with its subsidiaries, provides various insurance products and services in the United States, the District of Columbia, and Puerto Rico. The company's Life segment offers whole life, term life, universal life, variable universal life, and credit life insurance products. Its Annuity segment provides deferred, variable, and single premium immediate annuity products. The company's Health segment offers medicare supplement, supplemental, stop-loss, credit disability, and medical expense insurance. Its Property and Casualty segment provides personal lines insurance, such as auto, homeowners, boats, motorcycles, recreational vehicles, and other exposures; and commercial lines of insurance, including property and casualty coverage tailored for a farm, ranch, or other agricultural business within the rural and suburban markets, as well as property, liability, and workers' compensation coverages. This segment also offers credit-related property insurance products comprising collateral or creditor protection insurance; guaranteed auto protection or guaranteed asset protection insurance; and mortgage security insurance. The company distributes its products through career and multiple-line agents, broker-dealers, independent insurance agents and brokers, managing general underwriters, and financial institutions, as well as through direct marketing channels. American National Insurance Company was founded in 1905 and is headquartered in Galveston, Texas.
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