Analyzing Primerica (NYSE:PRI) and NN Group (OTCMKTS:NNGRY)

Primerica (NYSE:PRI) and NN Group (OTCMKTS:NNGRY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Dividends

Primerica pays an annual dividend of $4.16 per share and has a dividend yield of 1.6%. NN Group pays an annual dividend of $1.99 per share and has a dividend yield of 5.9%. Primerica pays out 28.0% of its earnings in the form of a dividend. Primerica has increased its dividend for 2 consecutive years.

Risk & Volatility

Primerica has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, NN Group has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Primerica and NN Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primerica	0	4	2	0	2.33
NN Group	1	3	0	1	2.20

Primerica currently has a consensus price target of $317.83, indicating a potential upside of 22.50%. Given Primerica’s stronger consensus rating and higher probable upside, analysts clearly believe Primerica is more favorable than NN Group.

Institutional and Insider Ownership

90.9% of Primerica shares are held by institutional investors. Comparatively, 0.0% of NN Group shares are held by institutional investors. 0.6% of Primerica shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Primerica and NN Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primerica	15.82%	32.30%	4.74%
NN Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Primerica and NN Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primerica	$3.09 billion	2.78	$470.52 million	$14.87	17.45
NN Group	$10.28 billion	1.73	$1.71 billion	N/A	N/A

NN Group has higher revenue and earnings than Primerica.

Summary

Primerica beats NN Group on 11 of the 16 factors compared between the two stocks.

About Primerica

Primerica, Inc., together with its subsidiaries, provides financial products and services to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement plans. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental and accidental death, and disability insurance. It distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is headquartered in Duluth, Georgia.

About NN Group

NN Group N.V., a financial services company, provides life and non-life insurance products in the Netherlands and internationally. The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments. It offers Life insurance products, such as group and individual pension products, retail life insurance, and SME life insurance products; and non-life insurance products, including motor, fire, liability, transport, travel, health, property and casualty, and disability and accident insurance products. The company also provides banking services, including mortgage loans, bank annuities, consumer savings, and retail savings and investment products; reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, and Corporates customers directly through tied agents, agents/ brokers, platform insurance, and direct channels. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014. NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.