Head-To-Head Review: National Western Life Group (NWLI) versus Security National Financial (SNFCA)

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

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings and price targets for National Western Life Group and Security National Financial, as reported by MarketBeat.com.

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

Earnings & Valuation

This table compares National Western Life Group and Security National 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 Group $682.37 million 1.71 $100.89 million $26.70 12.01
Security National Financial $307.21 million 0.24 $12.18 million $0.42 10.74

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

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.

Insider and Institutional Ownership

79.7% of National Western Life Group shares are held by institutional investors. Comparatively, 8.1% of Security National Financial shares are held by institutional investors. 1.0% of National Western Life Group shares are held by company insiders. Comparatively, 18.2% of Security National Financial shares are held by company 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.

Summary

National Western Life Group beats Security National Financial on 8 of the 11 factors compared between the two stocks.

About National Western Life Group

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.

About Security National Financial

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.

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