Primerica (NYSE: PRI) and Security National Financial (NASDAQ:SNFCA) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.
Primerica pays an annual dividend of $0.80 per share and has a dividend yield of 0.8%. Security National Financial does not pay a dividend. Primerica pays out 15.5% of its earnings in the form of a dividend. Primerica has increased its dividend for 7 consecutive years.
95.9% of Primerica shares are held by institutional investors. Comparatively, 8.5% of Security National Financial shares are held by institutional investors. 0.9% of Primerica shares are held by company insiders. Comparatively, 18.2% of Security National Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Primerica and Security National Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Security National Financial||2.37%||5.03%||0.70%|
This is a summary of current recommendations and price targets for Primerica and Security National Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Security National Financial||0||0||0||0||N/A|
Primerica currently has a consensus target price of $91.50, suggesting a potential downside of 10.64%. Given Primerica’s higher possible upside, analysts plainly believe Primerica is more favorable than Security National Financial.
Valuation and Earnings
This table compares Primerica and Security National Financial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Primerica||$1.52 billion||2.98||$219.41 million||$5.15||19.88|
|Security National Financial||$307.21 million||0.23||$12.18 million||$0.33||13.79|
Primerica has higher revenue and earnings than Security National Financial. Security National Financial is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Primerica has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Security National Financial has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.
Primerica beats Security National Financial on 13 of the 15 factors compared between the two stocks.
Primerica Company Profile
Primerica Inc. (Primerica) is a distributor of financial products to middle-income households in the United States and Canada. The Company operates through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries. The Investment and Savings Products segment includes retail and managed mutual funds, and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds, an individual annuity savings product that it underwrites in Canada through Primerica Life Insurance Company of Canada (Primerica Life Canada). In the United States, it distributes mutual fund and annuity products of various third-party companies. It also earns fees for account servicing on a subset of the mutual funds it distributes.
Security National Financial Company Profile
Security National Financial Corporation is a holding company. The Company operates through three segments: life insurance, cemetery and mortuary, and mortgage loans. The life insurance segment is engaged in the business of selling and servicing selected lines of life insurance, annuity products, and accident and health insurance. The cemetery and mortuary segment consists of approximately seven mortuaries and five cemeteries in the state of Utah and a cemetery in the state of California. The mortgage loan segment originates and underwrites or otherwise purchases residential and commercial loans for new construction, existing homes and real estate projects. The Company is also engaged in pre-need selling of funeral, cemetery, mortuary and cremation services through its Utah and California operations. It also sells pre-need funeral, cemetery and cremation services.
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