Critical Contrast: FG Nexus (NASDAQ:FGNX) & Affirmative Insurance (OTCMKTS:AFFM)

Affirmative Insurance (OTCMKTS:AFFM) and FG Nexus (NASDAQ:FGNX) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Affirmative Insurance and FG Nexus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affirmative Insurance	0	0	0	0	0.00
FG Nexus	1	0	1	0	2.00

Given Affirmative Insurance’s higher possible upside, equities research analysts clearly believe Affirmative Insurance is more favorable than FG Nexus.

Valuation and Earnings

This table compares Affirmative Insurance and FG Nexus”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affirmative Insurance	N/A	N/A	N/A	N/A	N/A
FG Nexus	$17.35 million	0.42	-$1.15 million	N/A	N/A

Affirmative Insurance has higher earnings, but lower revenue than FG Nexus.

Profitability

This table compares Affirmative Insurance and FG Nexus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Affirmative Insurance	N/A	N/A	N/A
FG Nexus	N/A	-30.02%	-14.24%

Insider & Institutional Ownership

3.1% of FG Nexus shares are owned by institutional investors. 38.2% of FG Nexus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

FG Nexus beats Affirmative Insurance on 5 of the 8 factors compared between the two stocks.

About Affirmative Insurance

Affirmative Insurance Holdings, Inc. is a provider of non-standard personal automobile insurance policies for individual consumers in targeted geographic markets. As of March 31, 2015, the Company’s subsidiaries included insurance companies licensed to write insurance policies in 39 states, two underwriting agencies and a service company. As of March 31, 2015, the Company operated in seven states (Louisiana, Texas, California, Alabama, Illinois, Indiana and Missouri) and distributed its insurance policies through approximately 5,000 independent agents or brokers, including an unaffiliated underwriting agency that distributed its policies in the state of California. The Company also distributes and services non-standard insurance policies underwritten by a Texas county mutual insurance company.

About FG Nexus

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.