Analyzing FG Nexus (FGNX) and The Competition

FG Nexus (NASDAQ:FGNX) is one of 342 public companies in the “Financial Services” industry, but how does it weigh in compared to its competitors? We will compare FG Nexus to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Risk and Volatility

FG Nexus has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, FG Nexus’ competitors have a beta of -0.03, suggesting that their average stock price is 103% less volatile than the S&P 500.

Profitability

This table compares FG Nexus and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FG Nexus	-4,888.86%	-95.68%	-75.45%
FG Nexus Competitors	-249.09%	-54.59%	-6.19%

Insider & Institutional Ownership

3.1% of FG Nexus shares are held by institutional investors. Comparatively, 43.2% of shares of all “Financial Services” companies are held by institutional investors. 4.1% of FG Nexus shares are held by insiders. Comparatively, 22.1% of shares of all “Financial Services” companies 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 Recommendations

This is a breakdown of current ratings for FG Nexus and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FG Nexus	1	0	2	0	2.33
FG Nexus Competitors	1988	6910	11694	444	2.50

FG Nexus presently has a consensus price target of $35.00, suggesting a potential upside of 348.72%. As a group, “Financial Services” companies have a potential downside of 1.63%. Given FG Nexus’ higher possible upside, research analysts plainly believe FG Nexus is more favorable than its competitors.

Valuation & Earnings

This table compares FG Nexus and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FG Nexus	$2.44 million	-$66.74 million	-1.12
FG Nexus Competitors	$273.64 million	-$98.00 million	8.66

FG Nexus’ competitors have higher revenue, but lower earnings than FG Nexus. FG Nexus is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

FG Nexus competitors beat FG Nexus on 9 of the 13 factors compared.

FG Nexus Company Profile

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.