Head to Head Comparison: Aviva (AVVIY) and Genworth Financial (GNW)

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

Volatility and Risk

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Aviva has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 2.38, suggesting that its stock price is 138% more volatile than the S&P 500.

Profitability

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

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

Valuation and Earnings

This table compares Aviva and Genworth Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviva $63.97 billion 0.46 $1.93 billion $1.39 10.50
Genworth Financial $8.30 billion 0.17 $817.00 million $1.39 2.00

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

Analyst Recommendations

This is a breakdown of recent ratings for Aviva and Genworth Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviva 0 1 1 0 2.50
Genworth Financial 0 3 1 0 2.25

Genworth Financial has a consensus target price of $3.50, indicating a potential upside of 25.90%. Given Genworth Financial’s higher probable upside, analysts plainly believe Genworth Financial is more favorable than Aviva.

Dividends

Aviva pays an annual dividend of $1.01 per share and has a dividend yield of 6.9%. Genworth Financial does not pay a dividend. Aviva pays out 72.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

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

Summary

Genworth Financial beats Aviva on 8 of the 13 factors compared between the two stocks.

Aviva Company Profile

Aviva plc provides life insurance, general insurance, accident and health insurance, and asset management products and services worldwide. The company's long-term insurance and savings products include Annuities; equity release products; pension products, such as personal and group pensions, stakeholder pensions, and income drawdown; protection products, including term assurance, mortgage life insurance, flexible whole of life, and critical illness cover and group schemes; bonds and savings comprising single premium investment bonds and regular premium savings plans; and investment products consisting of unit trusts, individual savings accounts, and open ended investment companies. Its general and health insurance products comprise personal lines of insurance products, such as motor, household, travel, and creditor insurance; commercial lines of insurance products, including fleet, liability, and commercial property insurance; health insurance products consisting of private health, income protection, and personal accident products, as well as various corporate healthcare insurance products; and insurance for corporate and specialty risks. In addition, the company offers asset management services to third-party investors. It sells its products through a range of distribution channels, including direct sales force, intermediaries, corporate partnerships, bancassurance, and joint ventures, as well as through the telephone and Internet. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.

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 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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