Financial Survey: Allstate (NYSE:ALL) versus Genworth Financial (NYSE:GNW)

Genworth Financial (NYSE:GNW) and Allstate (NYSE:ALL) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Genworth Financial has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Allstate has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Valuation & Earnings

This table compares Genworth Financial and Allstate”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genworth Financial	$7.17 billion	0.47	$223.00 million	$0.52	17.07
Allstate	$67.69 billion	0.93	$10.28 billion	$50.08	4.99

Allstate has higher revenue and earnings than Genworth Financial. Allstate is trading at a lower price-to-earnings ratio than Genworth Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Genworth Financial and Allstate’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genworth Financial	2.87%	1.06%	0.12%
Allstate	18.97%	41.64%	9.82%

Analyst Ratings

This is a breakdown of recent ratings for Genworth Financial and Allstate, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genworth Financial	0	2	1	0	2.33
Allstate	3	9	8	2	2.41

Genworth Financial currently has a consensus target price of $10.50, indicating a potential upside of 18.31%. Allstate has a consensus target price of $270.19, indicating a potential upside of 8.09%. Given Genworth Financial’s higher probable upside, analysts plainly believe Genworth Financial is more favorable than Allstate.

Insider and Institutional Ownership

81.8% of Genworth Financial shares are held by institutional investors. Comparatively, 76.5% of Allstate shares are held by institutional investors. 1.8% of Genworth Financial shares are held by insiders. Comparatively, 1.5% of Allstate shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Allstate beats Genworth Financial on 10 of the 15 factors compared between the two stocks.

About Genworth Financial

Genworth Financial, Inc., together with its subsidiaries, provides mortgage and long-term care insurance products in the United States and internationally. It operates in three segments: Enact, Long-Term Care Insurance, and Life and Annuities. The Enact segment offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and pool mortgage insurance products. The Long-Term Care Insurance segment offers long-term care insurance products that are intended to protect against the significant and escalating costs of long-term care services provided in the insured's home, assisted living, and nursing facilities. The Life and Annuities segment provides protection and retirement income products, that includes traditional and non-traditional life insurance, such as term, universal and term universal life insurance, corporate-owned life insurance, and funding agreements; fixed annuities; and variable annuities. It distributes its products through sales force, in-house sales representatives, and digital marketing programs. The company was founded in 1871 and is headquartered in Richmond, Virginia.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.