Both GWG Holdings Inc. (NASDAQ:GWGH) and Lincoln National Corporation (NYSE:LNC) compete on a level playing field in the Life Insurance industry. We will evaluate their performance with regards to risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Valuation and Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GWG Holdings Inc.||N/A||0.00||N/A||-7.81||0.00|
|Lincoln National Corporation||16.42B||0.79||1.64B||3.45||16.06|
In table 1 we can see GWG Holdings Inc. and Lincoln National Corporation‚Äôs gross revenue, earnings per share and valuation.
Table 2 provides us the net margins, return on assets and return on equity of both companies.
|Net Margins||Return on Equity||Return on Assets|
|GWG Holdings Inc.||0.00%||87%||-5.5%|
|Lincoln National Corporation||9.99%||12.9%||0.7%|
Risk and Volatility
GWG Holdings Inc. is 1.00% more volatile than S&P 500 due to its 1.01 beta. From a competition point of view, Lincoln National Corporation has a 1.91 beta which is 91.00% more volatile compared to S&P 500.
On the other side, $1.36 per share with a dividend yield of 2.17% for Lincoln National Corporation. No dividend is paid out by GWG Holdings Inc.
The following table shown below contains the ratings and recommendations for GWG Holdings Inc. and Lincoln National Corporation.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|GWG Holdings Inc.||0||0||1||3.00|
|Lincoln National Corporation||0||4||3||2.43|
The upside potential is 30.23% for GWG Holdings Inc. with consensus price target of $14. Meanwhile, Lincoln National Corporation‚Äôs consensus price target is $72.71, while its potential upside is 15.76%. The information presented earlier suggests that GWG Holdings Inc. looks more robust than Lincoln National Corporation as far as analyst view.
Institutional & Insider Ownership
GWG Holdings Inc. and Lincoln National Corporation has shares owned by institutional investors as follows: 1.3% and 84.4%. About 57.1% of GWG Holdings Inc.‚Äôs share are owned by insiders. Competitively, insiders own roughly 0.2% of Lincoln National Corporation‚Äôs shares.
Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|GWG Holdings Inc.||-0.33%||1.69%||-7.45%||23.91%||-2.27%||18.4%|
|Lincoln National Corporation||-11.91%||-15.74%||-14.49%||-20.07%||-28.51%||-27.84%|
For the past year GWG Holdings Inc. has 18.4% stronger performance while Lincoln National Corporation has -27.84% weaker performance.
On 8 of the 12 factors Lincoln National Corporation beats GWG Holdings Inc.
GWG Holdings, Inc., a financial services company, purchases life insurance policies in the secondary market in the United States. It purchases or finances life insurance assets from consumers in the secondary market at a discount to the face value of the policy benefit. The company also purchases policies in the secondary market through financial advisors and life insurance agents, as well as through its appointed agent program. It has developed a suite of options for the life insurance secondary market called LifeCare Xchange (LCX), which provides seniors with the exchange value of their life insurance policies they can apply to long-term care and other post-retirement needs. The company also focuses on applying proprietary M-Panel epigenetic technology to disrupt traditional life insurance underwriting practices. In addition, it provides secured loans to merchant cash advance funders, as well as merchant cash advances directly to small businesses. GWG Holdings, Inc. was founded in 2006 and is headquartered in Minneapolis, Minnesota.
Lincoln National Corporation, through its subsidiaries, engages in the multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The company sells a range of wealth protection, accumulation, and retirement income products and solutions. The company√ā‚Äôs products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, indexed universal life insurance, and employer-sponsored retirement plans and services, as well as group life, disability, and dental products. It also provides various plan investment vehicles, including individual and group variable annuities, group fixed annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL insurance products; and group non-medical insurance products, principally term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.