F&G Annuities & Life (NYSE:FG) vs. Emergent Capital (OTCMKTS:EMGCQ) Critical Analysis

F&G Annuities & Life (NYSE:FG) and Emergent Capital (OTCMKTS:EMGCQ) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares F&G Annuities & Life and Emergent Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
F&G Annuities & Life	0.22%	13.05%	0.64%
Emergent Capital	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for F&G Annuities & Life and Emergent Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
F&G Annuities & Life	0	2	0	0	2.00
Emergent Capital	0	0	0	0	0.00

F&G Annuities & Life presently has a consensus price target of $46.50, indicating a potential upside of 7.94%. Given F&G Annuities & Life’s stronger consensus rating and higher possible upside, equities research analysts clearly believe F&G Annuities & Life is more favorable than Emergent Capital.

Earnings and Valuation

This table compares F&G Annuities & Life and Emergent Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
F&G Annuities & Life	$5.50 billion	0.99	-$58.00 million	($0.06)	-718.00
Emergent Capital	N/A	N/A	N/A	N/A	N/A

Emergent Capital has lower revenue, but higher earnings than F&G Annuities & Life.

Insider & Institutional Ownership

95.9% of F&G Annuities & Life shares are owned by institutional investors. 1.8% of F&G Annuities & Life shares are owned by insiders. Comparatively, 48.9% of Emergent Capital shares are owned 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.

Summary

F&G Annuities & Life beats Emergent Capital on 7 of the 8 factors compared between the two stocks.

About F&G Annuities & Life

F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.

About Emergent Capital

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of August 31, 2020, it owned a portfolio of 500 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. The company was founded in 2006 and is based in Boca Raton, Florida. On October 15, 2020, Emergent Capital, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.