Critical Analysis: Corebridge Financial (NYSE:CRBG) versus Emergent Capital (OTCMKTS:EMGCQ)

Corebridge Financial (NYSE:CRBG) and Emergent Capital (OTCMKTS:EMGCQ) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Corebridge Financial and Emergent Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Corebridge Financial	10.16%	23.57%	0.72%
Emergent Capital	N/A	N/A	N/A

Institutional and Insider Ownership

98.3% of Corebridge Financial shares are held by institutional investors. 0.1% of Corebridge Financial shares are held by company insiders. Comparatively, 48.9% of Emergent Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Corebridge Financial and Emergent Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corebridge Financial	$21.21 billion	0.85	$1.10 billion	$3.21	9.45
Emergent Capital	N/A	N/A	N/A	N/A	N/A

Corebridge Financial has higher revenue and earnings than Emergent Capital.

Analyst Recommendations

This is a breakdown of current recommendations for Corebridge Financial and Emergent Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corebridge Financial	0	3	10	0	2.77
Emergent Capital	0	0	0	0	N/A

Corebridge Financial presently has a consensus price target of $34.46, indicating a potential upside of 13.62%. Given Corebridge Financial’s higher possible upside, research analysts clearly believe Corebridge Financial is more favorable than Emergent Capital.

Summary

Corebridge Financial beats Emergent Capital on 7 of the 8 factors compared between the two stocks.

About Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.

About Emergent Capital

Emergent Capital, Inc., a specialty finance company, invests in life settlements. As of August 31, 2020, it owned a portfolio of 500 life insurance policies. The company was formerly known as Imperial Holdings, Inc. and changed its name to Emergent Capital, Inc. in September 2015. The company was founded in 2006 and is based in Boca Raton, Florida. On October 15, 2020, Emergent Capital, Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.