Critical Review: FBL Financial Group (FFG) vs. Its Competitors

FBL Financial Group (NYSE: FFG) is one of 38 public companies in the “Life insurance” industry, but how does it compare to its rivals? We will compare FBL Financial Group to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Dividends

FBL Financial Group pays an annual dividend of $1.84 per share and has a dividend yield of 2.5%. FBL Financial Group pays out 42.6% of its earnings in the form of a dividend. As a group, “Life insurance” companies pay a dividend yield of 2.2% and pay out 28.7% of their earnings in the form of a dividend. FBL Financial Group has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares FBL Financial Group and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FBL Financial Group $735.48 million $194.32 million 16.93
FBL Financial Group Competitors $22.05 billion $1.25 billion 16.02

FBL Financial Group’s rivals have higher revenue and earnings than FBL Financial Group. FBL Financial Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

30.2% of FBL Financial Group shares are held by institutional investors. Comparatively, 49.3% of shares of all “Life insurance” companies are held by institutional investors. 0.4% of FBL Financial Group shares are held by insiders. Comparatively, 18.8% of shares of all “Life insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares FBL Financial Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FBL Financial Group 26.42% 8.52% 1.10%
FBL Financial Group Competitors 4.44% 4.85% 0.81%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for FBL Financial Group and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FBL Financial Group 0 1 0 0 2.00
FBL Financial Group Competitors 317 1126 1513 83 2.45

As a group, “Life insurance” companies have a potential upside of 9.22%. Given FBL Financial Group’s rivals stronger consensus rating and higher probable upside, analysts clearly believe FBL Financial Group has less favorable growth aspects than its rivals.

Volatility and Risk

FBL Financial Group has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, FBL Financial Group’s rivals have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.

Summary

FBL Financial Group rivals beat FBL Financial Group on 10 of the 15 factors compared.

FBL Financial Group Company Profile

FBL Financial Group, Inc., through its subsidiaries, sells individual life insurance and annuity products. The Annuity segment sells various traditional annuity products that primarily consist of fixed rate and indexed annuities, and supplementary contracts. The Life Insurance segment offers whole life, term life, and universal life policies. The company markets its products to Farm Bureau members, and other individuals and businesses through exclusive agents and agency managers principally under the consumer brand name of Farm Bureau Financial Services in the Midwestern and Western sections of the United States. FBL Financial Group, Inc. was founded in 1944 and is headquartered in West Des Moines, Iowa.

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