Scor (OTCMKTS: SCRYY) and GWG (NASDAQ:GWGH) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Scor and GWG, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares Scor and GWG’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Scor||$15.00 billion||0.55||$323.26 million||$0.17||25.00|
|GWG||$64.13 million||0.75||-$20.63 million||$3.16||2.63|
Scor has higher revenue and earnings than GWG. GWG is trading at a lower price-to-earnings ratio than Scor, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Scor has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, GWG has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Scor pays an annual dividend of $0.14 per share and has a dividend yield of 3.3%. GWG does not pay a dividend. Scor pays out 82.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
0.4% of Scor shares are held by institutional investors. Comparatively, 0.1% of GWG shares are held by institutional investors. 77.4% of GWG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Scor and GWG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Scor Company Profile
SCOR SE is engaged in providing life and non-life reinsurance. The Company’s segments include SCOR Global P&C (Non-Life) and SCOR Global Life (Life). The Company’s divisions include SCOR Global P&C, SCOR Global Life and SCOR Global Investments. The Company’s Non-Life segment is divided into four business areas: Property and Casualty Treaties; Specialty Treaties; Business Solutions (underwriting of large corporate accounts), and Business Ventures and Partnerships. It covers all insurable risks of industrial groups and services companies (large corporate accounts). The Company’s Property and Casualty Treaties business area underwrites proportional and non-proportional reinsurance treaties. Its casualty treaties typically cover original risks of general liability, product liability or professional indemnity. The Company’s Global Life segment underwrites Life reinsurance business in the product lines, such as Protection, Financial Solutions and Longevity.
GWG Company Profile
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 life insurance agents, as well as through its appointed agent program. It has developed a suite of options for the life insurance secondary market called LifeCare Xchange (LCX), which provides seniors with the exchange value of their life insurance policies they can apply to long-term care and other post-retirement needs. The company also focuses on applying proprietary M-Panel epigenetic technology to disrupt traditional life insurance underwriting practices. In addition, 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.
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