Tiptree Financial (NASDAQ:TIPT) versus F&G Annuities & Life (NYSE:FG) Critical Survey

Tiptree Financial (NASDAQ:TIPT) and F&G Annuities & Life (NYSE:FG) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Risk & Volatility

Tiptree Financial has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, F&G Annuities & Life has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Dividends

Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. F&G Annuities & Life pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. Tiptree Financial pays out 2.2% of its earnings in the form of a dividend. F&G Annuities & Life pays out 34.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tiptree Financial has raised its dividend for 2 consecutive years and F&G Annuities & Life has raised its dividend for 2 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tiptree Financial	N/A	0.75%	0.11%
F&G Annuities & Life	6.89%	10.28%	0.50%

Earnings & Valuation

This table compares Tiptree Financial and F&G Annuities & Life”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tiptree Financial	$490,000.00	1,246.40	$34.93 million	$10.81	1.52
F&G Annuities & Life	$5.73 billion	0.49	$265.00 million	$2.93	7.29

F&G Annuities & Life has higher revenue and earnings than Tiptree Financial. Tiptree Financial is trading at a lower price-to-earnings ratio than F&G Annuities & Life, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Tiptree Financial and F&G Annuities & Life, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tiptree Financial	0	1	0	0	2.00
F&G Annuities & Life	2	2	0	0	1.50

F&G Annuities & Life has a consensus price target of $24.00, suggesting a potential upside of 12.41%. Given F&G Annuities & Life’s higher probable upside, analysts plainly believe F&G Annuities & Life is more favorable than Tiptree Financial.

Insider & Institutional Ownership

37.8% of Tiptree Financial shares are owned by institutional investors. Comparatively, 95.9% of F&G Annuities & Life shares are owned by institutional investors. 31.9% of Tiptree Financial shares are owned by company insiders. Comparatively, 2.5% of F&G Annuities & Life shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

F&G Annuities & Life beats Tiptree Financial on 10 of the 15 factors compared between the two stocks.

About Tiptree Financial

Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage. The company offers niche; commercial lines insurance products, including professional liability, general liability, contractual liability protection, property and other short-tail, and alternative risks insurance products; and personal lines insurance products, such as credit protection surrounding loan payments. It also provides auto and consumer warranty programs, including mobile devices, consumer electronics, appliances, furniture; and vehicle service contracts, GAP, and ancillary products; as well as premium or warranty contract financing services, lead generation support, and business process outsourcing services. In addition, the company offers mortgage loans for institutional investors; asset management services; and maritime shipping and asset management services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, online retailers, auto dealers, and regional big box retailers. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was founded in 1978 and is headquartered in Greenwich, Connecticut.

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.