Analyzing Genworth Financial (NYSE:GNW) & National Security Group (NYSE:NSEC)

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Genworth Financial (NYSE:GNW) and National Security Group (NASDAQ:NSEC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Dividends

National Security Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Genworth Financial does not pay a dividend.

Institutional and Insider Ownership

66.0% of Genworth Financial shares are held by institutional investors. Comparatively, 2.4% of National Security Group shares are held by institutional investors. 0.3% of Genworth Financial shares are held by company insiders. Comparatively, 38.2% of National Security Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Genworth Financial has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, National Security Group has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Genworth Financial 1.87% 1.21% 0.17%
National Security Group 4.11% 5.82% 1.87%

Valuation and Earnings

This table compares Genworth Financial and National Security Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genworth Financial $8.43 billion 0.23 $119.00 million $0.36 10.69
National Security Group $64.86 million 0.45 $780,000.00 N/A N/A

Genworth Financial has higher revenue and earnings than National Security Group.

Analyst Recommendations

This is a breakdown of recent ratings for Genworth Financial and National Security Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genworth Financial 0 1 0 0 2.00
National Security Group 0 0 0 0 N/A

Summary

National Security Group beats Genworth Financial on 6 of the 11 factors compared between the two stocks.

Genworth Financial Company Profile

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 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 and funding agreements backing notes. The company distributes its products and services primarily through appointed independent producers and employer groups. Genworth Financial, Inc. was founded in 1871 and is headquartered in Richmond, Virginia.

National Security Group Company Profile

The National Security Group, Inc., an insurance holding company, provides insurance products and services in the United States. The company operates in two segments, Property and Casualty Insurance, and Life Insurance. The Property and Casualty Insurance segment primarily underwrites home insurance coverage with primary lines of business consisting of dwelling fire and extended coverage, mobile homeowners, and other liability insurance services in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee, and West Virginia, as well as operates on a surplus lines basis in the state of Louisiana. The Life Insurance segment offers ordinary life, accident and health, supplemental hospital, and cancer insurance products in Alabama, Florida, Georgia, Mississippi, South Carolina, Tennessee, and Texas. The company distributes its products through independent agents, home service agents, and brokers. The National Security Group, Inc. was founded in 1947 and is based in Elba, Alabama.

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