Brighthouse Financial (NASDAQ: BHF) and Lincoln Financial Group (NYSE:LNC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Institutional & Insider Ownership
84.6% of Brighthouse Financial shares are owned by institutional investors. Comparatively, 82.3% of Lincoln Financial Group shares are owned by institutional investors. 1.1% of Lincoln Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Brighthouse Financial and Lincoln Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lincoln Financial Group||1||5||6||0||2.42|
Brighthouse Financial currently has a consensus target price of $64.93, suggesting a potential upside of 26.08%. Lincoln Financial Group has a consensus target price of $83.91, suggesting a potential upside of 18.45%. Given Brighthouse Financial’s higher probable upside, equities research analysts plainly believe Brighthouse Financial is more favorable than Lincoln Financial Group.
Earnings and Valuation
This table compares Brighthouse Financial and Lincoln Financial Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brighthouse Financial||$6.84 billion||0.90||-$378.00 million||N/A||N/A|
|Lincoln Financial Group||$14.59 billion||1.06||$2.08 billion||$7.79||9.09|
Lincoln Financial Group has higher revenue and earnings than Brighthouse Financial.
Lincoln Financial Group pays an annual dividend of $1.32 per share and has a dividend yield of 1.9%. Brighthouse Financial does not pay a dividend. Lincoln Financial Group pays out 16.9% of its earnings in the form of a dividend. Lincoln Financial Group has increased its dividend for 7 consecutive years.
This table compares Brighthouse Financial and Lincoln Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lincoln Financial Group||14.48%||10.86%||0.64%|
Lincoln Financial Group beats Brighthouse Financial on 11 of the 14 factors compared between the two stocks.
About Brighthouse Financial
Brighthouse Financial, Inc. provides a range of annuity and life insurance products in the United States. The company operates through three segments: Annuities, Life, and Run-off. It offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security; and term, whole, universal, and variable life insurance products for policyholders' needs for financial security and protected wealth transfer. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.
About Lincoln Financial Group
Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The company sells a range of wealth protection, accumulation, and retirement income products and solutions. The company's products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, indexed universal life insurance, and employer-sponsored retirement plans and services, as well as group life, disability, and dental products. It also provides various plan investment vehicles, including individual and group variable annuities, group fixed annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL insurance products; and group non-medical insurance products, such as term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.
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