Head to Head Comparison: Primerica (PRI) versus Tower Group International (TWGP)

Primerica (NYSE: PRI) and Tower Group International (NASDAQ:TWGP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Primerica and Tower Group International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primerica $1.69 billion 2.66 $350.25 million $7.65 13.25
Tower Group International N/A N/A N/A ($9.43) N/A

Primerica has higher revenue and earnings than Tower Group International. Tower Group International is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

91.5% of Primerica shares are held by institutional investors. 0.9% of Primerica shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Primerica and Tower Group International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primerica 0 4 0 0 2.00
Tower Group International 0 0 0 0 N/A

Primerica currently has a consensus target price of $103.00, suggesting a potential upside of 1.63%.


Primerica pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. Tower Group International does not pay a dividend. Primerica pays out 13.1% of its earnings in the form of a dividend. Primerica has increased its dividend for 7 consecutive years.


This table compares Primerica and Tower Group International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primerica 20.74% 19.47% 2.10%
Tower Group International N/A N/A N/A


Primerica beats Tower Group International on 9 of the 10 factors compared between the two stocks.

Primerica Company Profile

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.

Tower Group International Company Profile

Tower Group, Inc. (Tower), through its subsidiaries, offers a range of commercial, personal and specialty property and casualty insurance products and services to businesses in various industries and to individuals. The Company operates in three segments: Brokerage Insurance, Specialty Business and Insurance Services. On February 5, 2009, Tower acquired CastlePoint Holdings, Ltd. (CastlePoint). On February 27, 2009, the Company and its subsidiary, CastlePoint, completed the acquisition of HIG, Inc. (Hermitage), a property and casualty insurance holding company. On October 14, 2009, the Company completed the acquisition of the renewal rights to the workers compensation business of AequiCap Program Administrators, Inc. (AequiCap), an underwriting agency. On November 13, 2009, it acquired Specialty Underwriters Alliance, Inc. (SUA). In July 2010, Tower Group, Inc. acquired the Personal Lines Division of OneBeacon Insurance Group, Ltd.

Receive News & Ratings for Primerica Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Primerica and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply