Head to Head Comparison: GWG Holdings (GWGH) and Prudential Public Limited (NYSE:PUK)

GWG Holdings (NASDAQ: GWGH) and Prudential Public Limited (NYSE:PUK) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares GWG Holdings and Prudential Public Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GWG Holdings -21.92% -184.34% 4.35%
Prudential Public Limited N/A N/A N/A

Volatility & Risk

GWG Holdings has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Prudential Public Limited has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for GWG Holdings and Prudential Public Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GWG Holdings 0 0 2 0 3.00
Prudential Public Limited 0 2 3 0 2.60

GWG Holdings currently has a consensus target price of $14.50, suggesting a potential upside of 38.89%. Given GWG Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe GWG Holdings is more favorable than Prudential Public Limited.

Dividends

Prudential Public Limited pays an annual dividend of $1.59 per share and has a dividend yield of 3.4%. GWG Holdings does not pay a dividend. GWG Holdings has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

0.2% of GWG Holdings shares are owned by institutional investors. Comparatively, 1.7% of Prudential Public Limited shares are owned by institutional investors. 77.4% of GWG Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares GWG Holdings and Prudential Public Limited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GWG Holdings $62.55 million 0.97 -$15.50 million ($2.68) -3.90
Prudential Public Limited $104.74 billion 0.57 $6.58 billion N/A N/A

Prudential Public Limited has higher revenue and earnings than GWG Holdings.

Summary

Prudential Public Limited beats GWG Holdings on 8 of the 14 factors compared between the two stocks.

GWG Holdings Company Profile

GWG Holdings, Inc. is a financial service company. The Company is a financial purchaser of life insurance assets in the secondary market. The Company creates opportunities for consumers owning life insurance to obtain value for their policies as compared to the traditional options offered by insurance companies. The Company also creates opportunities for investors to participate in alternative asset classes, such as life insurance, not correlated to traditional financial markets. The Company conducts its life insurance related business through its subsidiary, GWG Life, LLC. It generally purchases life insurance assets directly from policy owners having purchased their life insurance in the primary market. Its operational platform offers various options to customers based on the market value of their life insurance, including selling the entire policy benefit for cash, or selling a portion of the policy benefit and retaining a portion of the benefit with no future premium obligation.

Prudential Public Limited Company Profile

Prudential Public Limited Company (Prudential) is a United Kingdom-based international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. The Company’s insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. The Company’s asset management operations include Eastspring Investments, US broker-dealer and asset management, M&G and Prudential Capital. Eastspring Investments is an asset manager in Asia and provides investment solutions across a range of asset classes.

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