Critical Contrast: FG Nexus (NASDAQ:FGNX) and Allied World Assurance (OTCMKTS:AWHHF)

FG Nexus (NASDAQ:FGNX) and Allied World Assurance (OTCMKTS:AWHHF) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Institutional & Insider Ownership

3.1% of FG Nexus shares are owned by institutional investors. Comparatively, 86.5% of Allied World Assurance shares are owned by institutional investors. 38.2% of FG Nexus shares are owned by insiders. Comparatively, 3.2% of Allied World Assurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares FG Nexus and Allied World Assurance’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%
Allied World Assurance	N/A	N/A	N/A

Earnings & Valuation

This table compares FG Nexus and Allied World Assurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FG Nexus	$17.35 million	0.30	-$1.15 million	($8.66)	-0.45
Allied World Assurance	N/A	N/A	N/A	N/A	N/A

Allied World Assurance has lower revenue, but higher earnings than FG Nexus.

Analyst Recommendations

This is a breakdown of recent recommendations for FG Nexus and Allied World Assurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FG Nexus	1	1	2	0	2.25
Allied World Assurance	0	0	0	0	0.00

FG Nexus currently has a consensus price target of $8.00, suggesting a potential upside of 103.56%. Given FG Nexus’ stronger consensus rating and higher possible upside, equities research analysts clearly believe FG Nexus is more favorable than Allied World Assurance.

Summary

FG Nexus beats Allied World Assurance on 5 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 Allied World Assurance

Allied World Assurance Company Holdings Ltd is a Germany-based holding company. It provides property, casualty and specialty insurance and reinsurance solutions to clients around the world. The Company operates in three segments: North American Insurance, Global Markets Insurance and Reinsurance. The North American Insurance segment consists of the Company’s direct insurance operations in the United States, Bermuda and Canada. The Global Markets Insurance segment includes all of the Company’s direct insurance operations outside of North America. The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverage’s written by other reinsurance companies. The Company leases space in Australia, Bermuda, Canada, Hong Kong, Ireland, Labuan, Singapore, the United Kingdom and the United States for the operation of its North American Insurance, Global Markets Insurance and Reinsurance segments.