Critical Analysis: Emergent Capital (OTCMKTS:EMGCQ) and F&G Annuities & Life (NYSE:FG)

Emergent Capital (OTCMKTS:EMGCQ) and F&G Annuities & Life (NYSE:FG) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Emergent Capital and F&G Annuities & Life’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emergent Capital	N/A	N/A	N/A
F&G Annuities & Life	0.22%	13.05%	0.64%

Insider and Institutional Ownership

95.9% of F&G Annuities & Life shares are owned by institutional investors. 48.9% of Emergent Capital shares are owned by company insiders. Comparatively, 1.8% of F&G Annuities & Life shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Emergent Capital and F&G Annuities & Life, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emergent Capital	0	0	0	0	0.00
F&G Annuities & Life	0	2	0	0	2.00

F&G Annuities & Life has a consensus target price of $46.50, suggesting a potential upside of 4.11%. Given F&G Annuities & Life’s stronger consensus rating and higher possible upside, analysts plainly believe F&G Annuities & Life is more favorable than Emergent Capital.

Earnings and Valuation

This table compares Emergent Capital and F&G Annuities & Life”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emergent Capital	N/A	N/A	N/A	N/A	N/A
F&G Annuities & Life	$4.50 billion	1.25	-$58.00 million	($0.06)	-744.29

Emergent Capital has higher earnings, but lower revenue than F&G Annuities & Life.

Summary

F&G Annuities & Life beats Emergent Capital on 7 of the 8 factors compared between the two stocks.

About Emergent Capital

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of August 31, 2020, it owned a portfolio of 500 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. The company was founded in 2006 and is based in Boca Raton, Florida. On October 15, 2020, Emergent Capital, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About F&G Annuities & Life

F&G Annuities & Life, Inc. engages in the provision of fixed annuity and life insurance products. It specializes in life insurance, annuities, retirement planning and wealth transfer. The company was founded in 1959 and is headquartered in Des Moines, IA.