Legal & General Group (OTCMKTS:LGGNY) & SelectQuote (NYSE:SLQT) Critical Review

Legal & General Group (OTCMKTS:LGGNY) and SelectQuote (NYSE:SLQT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Legal & General Group and SelectQuote’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legal & General Group	N/A	N/A	N/A
SelectQuote	3.12%	6.35%	1.66%

Analyst Ratings

This is a summary of current ratings and recommmendations for Legal & General Group and SelectQuote, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legal & General Group	1	3	0	0	1.75
SelectQuote	1	2	1	1	2.40

SelectQuote has a consensus price target of $4.42, indicating a potential upside of 117.57%. Given SelectQuote’s stronger consensus rating and higher possible upside, analysts plainly believe SelectQuote is more favorable than Legal & General Group.

Volatility & Risk

Legal & General Group has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Valuation & Earnings

This table compares Legal & General Group and SelectQuote”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legal & General Group	$13.51 billion	1.35	$244.08 million	N/A	N/A
SelectQuote	$1.53 billion	0.23	$47.58 million	$0.05	40.60

Legal & General Group has higher revenue and earnings than SelectQuote.

Institutional and Insider Ownership

0.0% of Legal & General Group shares are held by institutional investors. Comparatively, 34.6% of SelectQuote shares are held by institutional investors. 11.4% of SelectQuote shares 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.

Summary

SelectQuote beats Legal & General Group on 10 of the 13 factors compared between the two stocks.

About Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The Retail segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.