Security National Financial (SNFCA) versus National Western Life Group (NWLI) Financial Review

Security National Financial (NASDAQ: SNFCA) and National Western Life Group (NASDAQ:NWLI) are both small-cap life insurance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Insider & Institutional Ownership

8.5% of Security National Financial shares are owned by institutional investors. Comparatively, 79.8% of National Western Life Group shares are owned by institutional investors. 18.2% of Security National Financial shares are owned by company insiders. Comparatively, 1.0% of National Western Life Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Security National Financial has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, National Western Life Group has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Dividends

National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Security National Financial does not pay a dividend. National Western Life Group pays out 1.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Security National Financial and National Western Life Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Security National Financial 0 0 0 0 N/A
National Western Life Group 0 0 0 0 N/A

Valuation and Earnings

This table compares Security National Financial and National Western Life Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Security National Financial $307.21 million 0.23 $12.18 million $0.33 13.79
National Western Life Group $682.37 million 1.79 $100.89 million $26.70 12.57

National Western Life Group has higher revenue and earnings than Security National Financial. National Western Life Group is trading at a lower price-to-earnings ratio than Security National Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Security National Financial and National Western Life Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Security National Financial 2.37% 5.03% 0.70%
National Western Life Group 11.31% 4.75% 0.70%

Summary

National Western Life Group beats Security National Financial on 8 of the 12 factors compared between the two stocks.

Security National Financial Company Profile

Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.

National Western Life Group Company Profile

National Western Life Insurance Company (National Western) is a stock life insurance company. The Company operates in two segments: Domestic Insurance Operations and International Insurance Operations. The products marketed under domestic insurance operations are annuities, universal life insurance and traditional life insurance, which include both term and whole life products. National Western’s international operations focus on foreign nationals in upper socioeconomic classes. The Company provides life insurance products for the savings and protection needs of approximately 126,700 policyholders and for the asset accumulation and retirement needs of 139,100 annuity contract holders. National Western offers a portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders.

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