Head to Head Analysis: Atlantic American (AAME) and Voya Financial (VOYA)

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Atlantic American (NASDAQ: AAME) and Voya Financial (NYSE:VOYA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Dividends

Atlantic American pays an annual dividend of $0.02 per share and has a dividend yield of 0.7%. Voya Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Voya Financial pays out 1.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

5.0% of Atlantic American shares are owned by institutional investors. 79.2% of Atlantic American shares are owned by insiders. Comparatively, 0.4% of Voya Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Atlantic American and Voya Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic American $181.11 million 0.30 $4.52 million N/A N/A
Voya Financial $8.62 billion 0.92 -$2.99 billion $3.01 15.61

Atlantic American has higher earnings, but lower revenue than Voya Financial.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Atlantic American and Voya Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic American 0 0 0 0 N/A
Voya Financial 0 3 11 0 2.79

Voya Financial has a consensus target price of $59.46, indicating a potential upside of 26.51%. Given Voya Financial’s higher possible upside, analysts plainly believe Voya Financial is more favorable than Atlantic American.

Profitability

This table compares Atlantic American and Voya Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlantic American -0.15% -3.18% -1.03%
Voya Financial -25.86% 4.01% 0.23%

Risk and Volatility

Atlantic American has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Voya Financial has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Summary

Voya Financial beats Atlantic American on 7 of the 13 factors compared between the two stocks.

Atlantic American Company Profile

Atlantic American Corporation, through its subsidiaries, provides life and health, and property and casualty insurance products in the United States. It operates through American Southern and Bankers Fidelity segments. The company offers property and casualty insurance products, including business automobile insurance coverage for state governments, local municipalities, and other motor pools and fleets; and inland marine and general liability insurance products. It also provides surety bond coverage for school bus transportation and subdivision construction, as well as performance and payment bonds. In addition, it provides ordinary and term life insurance, medicare supplement, and other accident and health insurance products. The company markets its products through independent agents, broker-agents, and special market agents. Atlantic American Corporation was founded in 1968 and is based in Atlanta, Georgia.

Voya Financial Company Profile

Voya Financial, Inc. operates as a retirement, investment, and insurance company in the United States. It operates through Retirement, Investment Management, Individual Life, and Employee Benefits segments. The Retirement segment offers tax-deferred employer-sponsored retirement savings plans and administrative services; and individual account rollover plans and other retail financial products, as well as financial planning and advisory services. This segment serves corporate, education, healthcare, and other non-profit and government entities, as well as institutional and individual customers through third-party administrators, wirehouse affiliated brokers, registered investment advisors, independent sales agents, and consulting firms. The Investment Management segment provides fixed income, equity, multi-asset, and alternative products and solutions to individual and institutional customers directly, as well as through consultant channel, banks, broker-dealers, and independent financial advisers. The Individual Life segment provides wealth protection and transfer opportunities through universal, variable, and term life products. The Employee Benefits segment offers stop loss, group life, voluntary employee-paid, and disability products through consultants, brokers, third-party administrators, enrollment firms, and technology partners. The company was formerly known as ING U.S., Inc. and changed its name to Voya Financial, Inc. in April 2014. Voya Financial, Inc. was incorporated in 1999 and is based in New York, New York.

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