Critical Comparison: Midwest (NASDAQ:MDWT) and Sony Financial (OTCMKTS:SNYFY)

Midwest (NASDAQ:MDWT – Get Rating) and Sony Financial (OTCMKTS:SNYFY – Get Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Midwest and Sony Financial, as reported by MarketBeat.

Midwest presently has a consensus target price of $12.00, suggesting a potential upside of 8.01%. Given Midwest’s higher possible upside, equities research analysts clearly believe Midwest is more favorable than Sony Financial.

Volatility & Risk

Midwest has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Sony Financial has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Midwest and Sony Financial’s net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Midwest and Sony Financial’s top-line revenue, earnings per share and valuation.

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

Institutional and Insider Ownership

37.4% of Midwest shares are held by institutional investors. 30.3% of Midwest shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Sony Financial beats Midwest on 7 of the 11 factors compared between the two stocks.

Midwest Company Profile (Get Rating)

Midwest Holding Inc., a financial services company, engages in life and annuity insurance business in the United States. The company offers multi-year guaranteed and fixed indexed annuity products through independent distributors comprising independent marketing organizations. It also provides asset management services to third-party insurers and reinsurers; and other services, including policy administration services. The company was incorporated in 2003 and is based in Lincoln, Nebraska.

Sony Financial Company Profile (Get Rating)

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates through three segments: Life Insurance Business, Non-Life Insurance Business, and Banking Business. It offers death protection, medical, educational endowment, living benefit, and other insurance products; and automobile, medical, overseas travel, and fire insurance products, as well as reinsurance services. The company also provides Yen and foreign currency deposits, mortgage loans, and investment trust and other services; and venture capital and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation.

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