Comparing AVIVA PLC/ADR (OTCMKTS:AVVIY) and FBL Financial Group (OTCMKTS:FFG)

AVIVA PLC/ADR (OTCMKTS:AVVIY) and FBL Financial Group (NYSE:FFG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Valuation & Earnings

This table compares AVIVA PLC/ADR and FBL Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AVIVA PLC/ADR $23.76 billion 0.90 $2.09 billion $1.01 10.57
FBL Financial Group $774.68 million 1.89 $126.21 million $4.75 12.47

AVIVA PLC/ADR has higher revenue and earnings than FBL Financial Group. AVIVA PLC/ADR is trading at a lower price-to-earnings ratio than FBL Financial Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AVIVA PLC/ADR and FBL Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AVIVA PLC/ADR N/A N/A N/A
FBL Financial Group 16.29% 8.47% 1.15%

Dividends

AVIVA PLC/ADR pays an annual dividend of $0.43 per share and has a dividend yield of 4.0%. FBL Financial Group pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. AVIVA PLC/ADR pays out 42.6% of its earnings in the form of a dividend. FBL Financial Group pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FBL Financial Group has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AVIVA PLC/ADR and FBL Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AVIVA PLC/ADR 0 4 1 0 2.20
FBL Financial Group 0 1 0 0 2.00

Volatility and Risk

AVIVA PLC/ADR has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, FBL Financial Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of AVIVA PLC/ADR shares are held by institutional investors. Comparatively, 29.1% of FBL Financial Group shares are held by institutional investors. 0.3% of FBL Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

FBL Financial Group beats AVIVA PLC/ADR on 10 of the 16 factors compared between the two stocks.

AVIVA PLC/ADR Company Profile

Aviva plc provides various insurance and savings products primarily in the United Kingdom, rest of Europe, North America, and South-East Asia. The company offers life insurance, long term health and accident insurance, savings, pension, and annuity products; and lifetime mortgage products. It also provides insurance cover to individuals, and small and medium-sized businesses for risks associated primarily with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities. In addition, the company offers retirement income, home, motor, travel, commercial, private medical, critical illness, and income protection insurance products. Further, it provides investment management services for institutional pension fund mandates; and manages various retail investment products, including investment funds, unit trusts, open-ended investment companies, and individual savings accounts for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. The company markets its products through a network of insurance brokers, as well as MyAviva, an online platform. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.

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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