Comparing Assured Guaranty (NYSE:AGO) and SelectQuote (NYSE:SLQT)

Assured Guaranty (NYSE:AGO) and SelectQuote (NYSE:SLQT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Profitability

This table compares Assured Guaranty and SelectQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assured Guaranty	40.45%	6.98%	3.25%
SelectQuote	5.60%	20.49%	5.58%

Risk and Volatility

Assured Guaranty has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Earnings & Valuation

This table compares Assured Guaranty and SelectQuote”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assured Guaranty	$1.11 billion	2.99	$503.00 million	$8.71	8.62
SelectQuote	$1.53 billion	0.13	$47.58 million	$0.09	12.34

Assured Guaranty has higher earnings, but lower revenue than SelectQuote. Assured Guaranty is trading at a lower price-to-earnings ratio than SelectQuote, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.2% of Assured Guaranty shares are owned by institutional investors. Comparatively, 34.6% of SelectQuote shares are owned by institutional investors. 5.7% of Assured Guaranty shares are owned by insiders. Comparatively, 13.1% of SelectQuote shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Assured Guaranty and SelectQuote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assured Guaranty	0	3	2	0	2.40
SelectQuote	1	2	0	2	2.60

Assured Guaranty presently has a consensus price target of $92.33, suggesting a potential upside of 23.04%. SelectQuote has a consensus price target of $2.92, suggesting a potential upside of 162.53%. Given SelectQuote’s stronger consensus rating and higher probable upside, analysts plainly believe SelectQuote is more favorable than Assured Guaranty.

Summary

SelectQuote beats Assured Guaranty on 9 of the 15 factors compared between the two stocks.

About Assured Guaranty

Assured Guaranty Ltd., together with its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. It operates through two segments: Insurance and Asset Management. The company offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It insures and reinsures various debt obligations, including bonds issued by the United States state governmental authorities; and notes issued to finance infrastructure projects. In addition, the company insures and reinsures various the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds. Further, the company involved in insuring and reinsuring of non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, life insurance transactions, consumer receivables securities, subscription finance facilities, pooled corporate obligations, and financial products. Additionally, it offers specialty business, such as real estate properties, insurance securitizations, and aircraft residual value insurance (RVI) transactions; and asset management services comprising investment advisory services. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was incorporated in 2003 and is headquartered in Hamilton, Bermuda.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.