Reviewing Genworth Financial (NYSE:GNW) and Old Republic International (NYSE:ORI)

Old Republic International (NYSE:ORI) and Genworth Financial (NYSE:GNW) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Old Republic International and Genworth Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Old Republic International	11.19%	12.13%	2.36%
Genworth Financial	2.87%	1.06%	0.12%

Valuation & Earnings

This table compares Old Republic International and Genworth Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Old Republic International	$9.72 billion	0.97	$935.40 million	$4.44	8.76
Genworth Financial	$7.17 billion	0.47	$223.00 million	$0.52	17.13

Old Republic International has higher revenue and earnings than Genworth Financial. Old Republic International is trading at a lower price-to-earnings ratio than Genworth Financial, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.9% of Old Republic International shares are owned by institutional investors. Comparatively, 81.8% of Genworth Financial shares are owned by institutional investors. 1.3% of Old Republic International shares are owned by company insiders. Comparatively, 1.8% of Genworth Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Old Republic International has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Genworth Financial has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Old Republic International and Genworth Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Old Republic International	0	2	2	0	2.50
Genworth Financial	0	2	1	0	2.33

Old Republic International presently has a consensus price target of $43.50, suggesting a potential upside of 11.83%. Genworth Financial has a consensus price target of $10.50, suggesting a potential upside of 17.88%. Given Genworth Financial’s higher probable upside, analysts clearly believe Genworth Financial is more favorable than Old Republic International.

Summary

Old Republic International beats Genworth Financial on 9 of the 14 factors compared between the two stocks.

About Old Republic International

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.

About Genworth Financial

Genworth Financial, Inc., together with its subsidiaries, provides mortgage and long-term care insurance products in the United States and internationally. It operates in three segments: Enact, Long-Term Care Insurance, and Life and Annuities. The Enact segment offers private mortgage insurance products primarily insuring prime-based, individually underwritten residential mortgage loans; and pool mortgage insurance products. The Long-Term Care Insurance segment offers long-term care insurance products that are intended to protect against the significant and escalating costs of long-term care services provided in the insured's home, assisted living, and nursing facilities. The Life and Annuities segment provides protection and retirement income products, that includes traditional and non-traditional life insurance, such as term, universal and term universal life insurance, corporate-owned life insurance, and funding agreements; fixed annuities; and variable annuities. It distributes its products through sales force, in-house sales representatives, and digital marketing programs. The company was founded in 1871 and is headquartered in Richmond, Virginia.