Midwest (NASDAQ:MDWT) versus Vericity (NASDAQ:VERY) Head to Head Comparison

Midwest (NASDAQ:MDWTGet Rating) and Vericity (NASDAQ:VERYGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Midwest and Vericity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midwest 0 2 0 0 2.00
Vericity 0 0 0 0 N/A

Midwest presently has a consensus price target of $17.00, indicating a potential upside of 64.09%. Given Midwest’s higher possible upside, analysts plainly believe Midwest is more favorable than Vericity.

Profitability

This table compares Midwest and Vericity’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midwest -44.36% -5.47% -0.39%
Vericity -9.35% -9.46% -2.08%

Valuation and Earnings

This table compares Midwest and Vericity’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midwest $30.06 million 1.29 -$16.64 million ($3.98) -2.60
Vericity $176.58 million 0.60 -$16.66 million N/A N/A

Midwest has higher earnings, but lower revenue than Vericity.

Institutional & Insider Ownership

37.4% of Midwest shares are held by institutional investors. 30.3% of Midwest shares are held by company insiders. Comparatively, 11.2% of Vericity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Midwest has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Vericity has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Summary

Midwest beats Vericity on 7 of the 10 factors compared between the two stocks.

Midwest Company Profile (Get Rating)

Midwest Holding Inc., a financial services company, engages in life and annuity insurance business in the United States. The company offers multi-year guaranteed and fixed indexed annuity products through independent distributors comprising independent marketing organizations. It also provides asset management services to third-party insurers and reinsurers; and other services, including policy administration services. The company was incorporated in 2003 and is based in Lincoln, Nebraska.

Vericity Company Profile (Get Rating)

Vericity, Inc., together with its subsidiaries, provides life insurance protection products for the middle American market. The company operates through Agency and Insurance segments. The Agency segment sells life insurance products for unaffiliated insurance companies through its call center distribution platform, as well as through its independent agents and other marketing organizations. This segment is also involved in the insurance lead sale activities through its eCoverage web presence. The Insurance segment provides term life, accidental death, and final expense products. Vericity, Inc. is headquartered in Chicago, Illinois.

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