FGL (FG) and AEGON (AEG) Critical Analysis

FGL (NYSE: FG) and AEGON (NYSE:AEG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

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68.3% of FGL shares are held by institutional investors. Comparatively, 9.1% of AEGON shares are held by institutional investors. 21.5% of FGL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for FGL and AEGON, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FGL	0	2	3	0	2.60
AEGON	2	2	1	0	1.80

FGL presently has a consensus target price of $11.00, suggesting a potential upside of 22.22%. AEGON has a consensus target price of $4.60, suggesting a potential downside of 29.56%. Given FGL’s stronger consensus rating and higher probable upside, equities analysts plainly believe FGL is more favorable than AEGON.

Profitability

This table compares FGL and AEGON’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FGL	N/A	9.54%	0.56%
AEGON	7.24%	6.59%	0.40%

Dividends

AEGON pays an annual dividend of $0.28 per share and has a dividend yield of 4.3%. FGL does not pay a dividend. AEGON pays out 33.3% of its earnings in the form of a dividend. AEGON has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares FGL and AEGON’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FGL	$1.72 billion	1.12	$41.00 million	N/A	N/A
AEGON	$37.24 billion	0.36	$2.79 billion	$0.84	7.77

AEGON has higher revenue and earnings than FGL.

Summary

FGL beats AEGON on 9 of the 14 factors compared between the two stocks.

FGL Company Profile

FGL Holdings, through its subsidiaries, sells individual life insurance products and annuities in the United States. The company offers deferred annuities, including fixed indexed annuity contracts and fixed rate annuity contracts; immediate annuities; and life insurance products. It also provides life and annuity reinsurance services, such as reinsurance on asset intensive, long duration life, and annuity liabilities. The company sells its products through independent agents, managing general agents, and specialty brokerage firms, as well as various institutional markets. FGL Holdings is headquartered in Hamilton, Bermuda.

AEGON Company Profile

Aegon N.V. provides life insurance, pensions, and asset management services. It offers life and protection products, such as traditional and universal life insurance products, as well as employer, endowment, term, and whole life insurance products; and supplemental health, accidental death and dismemberment insurance, critical illness, cancer treatment, credit/disability, income protection, travel, and long-term care insurance products. The company also provides variable and fixed annuities, retirement plans, mutual funds, and stable value solutions; individual and group pensions sponsored by or obtained through an employer; and mortgages, as well as banking products, including saving deposits. In addition, it offers general insurance products consisting of automotive, liability, disability, household insurance, and fire protection, as well as financing and reinsurance services. The company markets its products through brokerage, partner, institutional/worksite, and wholesale distribution channels. It has operations in the United States, Mexico, Brazil, the Netherlands, the United Kingdom, Central and Eastern Europe, Spain, Portugal, and Asia. The company was founded in 1983 and is headquartered in The Hague, the Netherlands.