Financial Review: Brighthouse Financial (NASDAQ:BHF) & Everest Group (NYSE:EG)

Everest Group (NYSE:EG) and Brighthouse Financial (NASDAQ:BHF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares Everest Group and Brighthouse Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$17.50 billion	0.90	$1.59 billion	$47.32	8.70
Brighthouse Financial	$6.77 billion	0.37	$433.00 million	$12.53	3.51

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

Institutional & Insider Ownership

92.6% of Everest Group shares are owned by institutional investors. Comparatively, 81.2% of Brighthouse Financial shares are owned by institutional investors. 0.7% of Everest Group shares are owned by company insiders. Comparatively, 1.6% of Brighthouse Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Everest Group and Brighthouse Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	9	6	0	2.40
Brighthouse Financial	0	7	0	0	2.00

Everest Group currently has a consensus target price of $411.38, suggesting a potential downside of 0.05%. Brighthouse Financial has a consensus target price of $61.25, suggesting a potential upside of 39.46%. Given Brighthouse Financial’s higher probable upside, analysts plainly believe Brighthouse Financial is more favorable than Everest Group.

Profitability

This table compares Everest Group and Brighthouse Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Everest Group	11.70%	13.71%	3.33%
Brighthouse Financial	12.49%	17.24%	0.45%

Risk and Volatility

Everest Group has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Brighthouse Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Everest Group beats Brighthouse Financial on 9 of the 14 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About Brighthouse Financial

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment consists of variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment offers term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.