Genworth Financial, Inc. (GNW) vs Lincoln National Corporation (LNC)

Genworth Financial, Inc. and Lincoln National Corporation are both Insurance Life companies. Lincoln National Corporation is the larger, with a market value of $7.9B against $3.6B — 2.2× the size. Lincoln National Corporation trades at the lower P/E: 3.5× against 17.8×. Lincoln National Corporation grew revenue faster over the last twelve months: 7.91% against 2.11%. Lincoln National Corporation has the higher net margin (11.7% vs 2.87%) and the higher return on invested capital (24.5% vs 3.41%). Across the 21 metrics below, Lincoln National Corporation leads on 14 and Genworth Financial, Inc. on 7.

Valuation

Metric GNW LNC Insurance Life median
P/E 17.79 3.53 12.15
P/S 0.49 0.42 0.75
P/B 0.37 0.78 1.12
Price to free cash flow 8.36 n/m 7.78
EV/EBITDA 5.86 1.50 8.42
EV/Sales 0.45 0.25 0.80
Earnings yield 5.62% 28.33% 8.23%
Free cash flow yield 11.96% (16.52%) 11.12%

Profitability

Metric GNW LNC Insurance Life median
Gross margin 29.03% 16.35% 32.44%
Operating margin 6.84% 16.35% 11.31%
Net margin 2.87% 11.74% 6.61%
Free cash flow margin 5.81% (6.87%) 15.04%
Return on equity 2.17% 23.98% 8.67%
Return on assets 0.24% 0.55% 0.67%
Return on invested capital 3.41% 24.53% 8.20%

Growth

Metric GNW LNC Insurance Life median
Revenue growth (TTM) 2.11% 7.91% 7.91%
EPS growth (last fiscal year) (20.59%) (68.33%) —
Revenue growth, 5-year CAGR (2.49%) 0.87% 1.08%
Net income growth, 5-year CAGR 4.61% 16.83% 0.00%

Health

Metric GNW LNC Insurance Life median
Debt to equity 0.15 0.60 0.48
Current ratio 0.28 0.20 0.21
Net debt to EBITDA (0.83) (2.07) 0.12

Dividend

Metric GNW LNC Insurance Life median
Dividend yield — 6.82% 2.41%
Payout ratio 0.00 0.25 0.17

Size

Metric GNW LNC Insurance Life median
Market cap 3.57b 7.92b 7.92b

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