Head-To-Head Review: FG Nexus (NASDAQ:FGNX) vs. Affirmative Insurance (OTCMKTS:AFFM)

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for FG Nexus and Affirmative Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FG Nexus	1	1	2	0	2.25
Affirmative Insurance	0	0	0	0	0.00

FG Nexus presently has a consensus price target of $8.00, indicating a potential upside of 117.98%. Given FG Nexus’ stronger consensus rating and higher probable upside, equities research analysts clearly believe FG Nexus is more favorable than Affirmative Insurance.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FG Nexus	$17.35 million	0.28	-$1.15 million	N/A	N/A
Affirmative Insurance	N/A	N/A	N/A	N/A	N/A

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

Summary

FG Nexus beats Affirmative Insurance on 6 of the 8 factors compared between the two stocks.

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.

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.