GWG (NASDAQ: AAME) and Atlantic American (NASDAQ:AAME) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This table compares GWG and Atlantic American’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for GWG and Atlantic American, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GWG currently has a consensus price target of $14.50, indicating a potential upside of 83.78%. Given GWG’s higher possible upside, equities research analysts plainly believe GWG is more favorable than Atlantic American.
Earnings & Valuation
This table compares GWG and Atlantic American’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GWG||$64.13 million||0.71||-$20.63 million||$3.16||2.50|
|Atlantic American||$181.11 million||0.27||$4.52 million||N/A||N/A|
Atlantic American has higher revenue and earnings than GWG.
Atlantic American pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. GWG does not pay a dividend.
Institutional and Insider Ownership
0.3% of GWG shares are held by institutional investors. Comparatively, 5.0% of Atlantic American shares are held by institutional investors. 77.9% of GWG shares are held by insiders. Comparatively, 79.2% of Atlantic American shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
GWG has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Atlantic American has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Atlantic American beats GWG on 8 of the 12 factors compared between the two stocks.
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 appointed agents. In addition, it focuses on applying proprietary M-Panel epigenetic technology to disrupt traditional life insurance underwriting practices. Further, 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.
About Atlantic American
Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. It also provides surety bond coverage for school bus transportation and subdivision construction, as well as performance and payment bonds. In addition, it provides ordinary and term life insurance, medicare supplement, and other accident and health insurance products. The company markets its products through independent agents, broker-agents, and special market agents. Atlantic American Corporation was founded in 1968 and is based in Atlanta, Georgia.
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