Legal & General (LGGNY) and Its Competitors Head-To-Head Contrast

Legal & General (OTCMKTS: LGGNY) is one of 52 public companies in the “Investment advice” industry, but how does it contrast to its peers? We will compare Legal & General to related companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, analyst recommendations and earnings.

Institutional & Insider Ownership

0.1% of Legal & General shares are held by institutional investors. Comparatively, 47.2% of shares of all “Investment advice” companies are held by institutional investors. 19.8% of shares of all “Investment advice” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Legal & General has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Legal & General’s peers have a beta of 1.21, meaning that their average share price is 21% more volatile than the S&P 500.

Dividends

Legal & General pays an annual dividend of $1.47 per share and has a dividend yield of 7.6%. Legal & General pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment advice” companies pay a dividend yield of 3.3% and pay out 44.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Legal & General and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Legal & General $52.17 billion $2.44 billion 9.90
Legal & General Competitors $2.42 billion $281.54 million 14.86

Legal & General has higher revenue and earnings than its peers. Legal & General is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Legal & General and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legal & General N/A N/A N/A
Legal & General Competitors 12.50% 21.24% 10.29%

Analyst Recommendations

This is a summary of current ratings for Legal & General and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legal & General 1 0 1 0 2.00
Legal & General Competitors 346 1779 2182 117 2.47

Legal & General currently has a consensus target price of $21.00, suggesting a potential upside of 8.78%. As a group, “Investment advice” companies have a potential upside of 9.18%. Given Legal & General’s peers stronger consensus rating and higher probable upside, analysts clearly believe Legal & General has less favorable growth aspects than its peers.

Summary

Legal & General peers beat Legal & General on 10 of the 15 factors compared.

About Legal & General

Legal & General Group Plc provides various insurance products and services worldwide. It operates in Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and General Insurance (GI) segments. The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; and lifetime mortgages. The LGIM segment provides index fund management; active fixed income and liquidity management; solution and liability driven investment; active equity; and real estate funds. The LGC segment offers investment strategy and implementation, and direct investment and structuring services. The GI segment provides household and accident, sickness, unemployment, and pet insurance products. The company is also involved in insurance agency and brokerage, unit trust, institutional fund management, distribution, mortgage finance, treasury, SPV, building project and modular housing development, general insurance, and open ended investment businesses. It also engages in the real estate investment and trading, fund general partner, fund trustee, long term, commercial lending, venture and development capital, contractual scheme, real estate agency, private equity, management, investor alternative investment fund, collective asset-management, reinsurance, and investment management activities, as well as provides investment advisory and property services. The company was founded in 1836 and is based in London, the United Kingdom.

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