Analyzing Citizens (CIA) and Brighthouse Financial (BHF)

Citizens (NYSE: CIA) and Brighthouse Financial (NASDAQ:BHF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Profitability

This table compares Citizens and Brighthouse Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens -16.02% -16.81% -2.44%
Brighthouse Financial -1.25% 5.93% 0.39%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Citizens and Brighthouse Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens 0 0 0 0 N/A
Brighthouse Financial 3 12 2 0 1.94

Brighthouse Financial has a consensus price target of $63.13, suggesting a potential upside of 31.61%. Given Brighthouse Financial’s higher possible upside, analysts plainly believe Brighthouse Financial is more favorable than Citizens.

Earnings and Valuation

This table compares Citizens and Brighthouse Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens $252.62 million 1.49 -$38.12 million N/A N/A
Brighthouse Financial $6.84 billion 0.84 -$378.00 million N/A N/A

Citizens has higher earnings, but lower revenue than Brighthouse Financial.

Institutional & Insider Ownership

20.8% of Citizens shares are owned by institutional investors. Comparatively, 85.6% of Brighthouse Financial shares are owned by institutional investors. 0.1% of Citizens shares are owned by insiders. Comparatively, 0.0% of Brighthouse Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Brighthouse Financial beats Citizens on 7 of the 10 factors compared between the two stocks.

About Citizens

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates through two segments, Life Insurance and Home Service Insurance. The Life Insurance segment offers ordinary whole life, burial insurance, pre-need policies, and accident and health related policies, as well as credit life insurance and final expense policies to middle and lower income families, and individuals in the Midwest and Southern United States; and whole life and endowment policies to international residents. This segment offers its products through third-party marketing organizations and independent marketing consultants. The Home Service Insurance segment provides pre-need, final expense, and ordinary and industrial life insurance services; and annuities, as well as limited liability property policies to middle and lower income individuals in Louisiana, Mississippi, and Arkansas. This segment markets its products through funeral homes and independent agents, as well as through a home service marketing distribution system. Citizens, Inc. was founded in 1969 and is headquartered in Austin, Texas.

About Brighthouse Financial

Brighthouse Financial, Inc. provides a range of annuity and life insurance products in the United States. The company operates through three segments: Annuities, Life, and Run-off. It offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security; and term, whole, universal, and variable life insurance products for policyholders' needs for financial security and protected wealth transfer. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.

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