Contrasting Genworth Financial (GNW) and Old Mutual (ODMTY)

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

Insider & Institutional Ownership

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67.3% of Genworth Financial shares are held by institutional investors. 0.3% of Genworth Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Genworth Financial and Old Mutual’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.30 billion 0.17 $817.00 million $1.39 2.00
Old Mutual $13.35 billion 1.23 $1.17 billion N/A N/A

Old Mutual has higher revenue and earnings than Genworth Financial.

Dividends

Old Mutual pays an annual dividend of $0.70 per share and has a dividend yield of 2.6%. Genworth Financial does not pay a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Genworth Financial 9.85% 4.63% 0.66%
Old Mutual N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for Genworth Financial and Old Mutual, as provided by MarketBeat.

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

Genworth Financial presently has a consensus target price of $3.50, suggesting a potential upside of 25.90%. Given Genworth Financial’s higher possible upside, equities analysts clearly believe Genworth Financial is more favorable than Old Mutual.

Volatility and Risk

Genworth Financial has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, Old Mutual has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Summary

Genworth Financial beats Old Mutual on 8 of the 12 factors compared between the two stocks.

About Genworth Financial

Genworth Financial, Inc. provides insurance and homeownership solutions in the United States and internationally. It operates through five segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment provides flow mortgage insurance; and bulk mortgage insurance products and services that aid in the sale of mortgages to the capital markets, as well as helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance and bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products and fixed annuity products in the United States. The Runoff segment covers non-strategic products, which primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance, and accident and health insurance products. This segment's institutional products include funding agreements, funding agreements backing notes, and guaranteed investment contracts. It distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 2003 and is headquartered in Richmond, Virginia.

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