Contrasting Genworth Financial (NYSE:GNW) and The Competition

Genworth Financial (NYSE: GNW) is one of 21 public companies in the “Multiline Insurance & Brokers” industry, but how does it compare to its peers? We will compare Genworth Financial to similar companies based on the strength of its earnings, profitability, analyst recommendations, dividends, institutional ownership, risk and valuation.

Institutional and Insider Ownership

66.9% of Genworth Financial shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Multiline Insurance & Brokers” companies are owned by institutional investors. 0.3% of Genworth Financial shares are owned by insiders. Comparatively, 15.4% of shares of all “Multiline Insurance & Brokers” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Genworth Financial has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, Genworth Financial’s peers have a beta of 1.27, meaning that their average share price is 27% more volatile than the S&P 500.

Profitability

This table compares Genworth Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genworth Financial 3.88% 1.57% 0.22%
Genworth Financial Competitors 6.74% 12.40% 2.77%

Analyst Ratings

This is a summary of current ratings and price targets for Genworth Financial and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 3 1 0 2.25
Genworth Financial Competitors 115 704 811 21 2.45

Genworth Financial presently has a consensus price target of $3.88, indicating a potential upside of 13.64%. As a group, “Multiline Insurance & Brokers” companies have a potential downside of 3.07%. Given Genworth Financial’s higher possible upside, analysts clearly believe Genworth Financial is more favorable than its peers.

Valuation and Earnings

This table compares Genworth Financial and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Genworth Financial $8.37 billion -$277.00 million 5.09
Genworth Financial Competitors $11.13 billion $534.17 million 229.70

Genworth Financial’s peers have higher revenue and earnings than Genworth Financial. Genworth Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Genworth Financial peers beat Genworth Financial on 10 of the 13 factors compared.

About Genworth Financial

Genworth Financial, Inc. (Genworth) is a financial security company. The Company provides insurance, wealth management, investment and financial solutions. As of December 31, 2011, the Company had more than 15 million customers, with a presence in more than 25 countries. The Company operates in Insurance, Mortgage Insurance and Corporate and Runoff. The Mortgage Insurance Division includes the business segments, such as International Mortgage Insurance and U.S. Mortgage Insurance. The Corporate and Runoff Division includes the Runoff segment and Corporate and Other activities. In September 2013, Genworth Financial, Inc closed the sale of its Wealth Management business, including Genworth Financial Wealth Management and alternative solutions provider, the Altegris companies, to a partnership of Aquiline Capital Partners and Genstar Capital.

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