Critical Review: NFP (NYSE:NFP) vs. Genworth Financial (GNW)

NFP (NYSE: NFP) and Genworth Financial (NYSE:GNW) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

66.7% of Genworth Financial shares are owned by institutional investors. 0.3% of Genworth Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NFP and Genworth Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NFP N/A N/A N/A
Genworth Financial 3.88% 1.57% 0.22%

Analyst Recommendations

This is a summary of current ratings and recommmendations for NFP and Genworth Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NFP 0 0 0 0 N/A
Genworth Financial 0 3 1 0 2.25

Genworth Financial has a consensus target price of $3.88, suggesting a potential upside of 19.97%.

Earnings & Valuation

This table compares NFP and Genworth Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NFP N/A N/A N/A $0.66 N/A
Genworth Financial $8.37 billion 0.19 -$277.00 million $0.71 4.55

NFP has higher earnings, but lower revenue than Genworth Financial. NFP is trading at a lower price-to-earnings ratio than Genworth Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Genworth Financial beats NFP on 8 of the 8 factors compared between the two stocks.

About NFP

National Financial Partners Corp. (NFP) and its benefits, insurance and wealth management businesses provide a range of advisory and brokerage services to the Company’s clients. NFP serves corporate and high net worth individual clients throughout the United States and in Canada, with a focus on the middle market and entrepreneurs. The Company operates in three segments: the Corporate Client Group (the CCG), the Individual Client Group (the ICG) and the Advisor Services Group (the ASG). The CCG is a corporate benefits advisor in the middle market, offering independent solutions. The ICG is in the delivery of independent life insurance, annuities, long term care and wealth transfer solutions for high net worth individuals. The ASG, including NFP Securities, Inc. (NFPSI), is an independent broker-dealer and registered investment advisor. In July 2013, National Financial Partners Corp announced the completion of its acquisition by a controlled affiliate of Madison Dearborn Partners, LLC.

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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