Atlantic American (NASDAQ:AAME) and UTG (OTCMKTS:UTGN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

5.0% of Atlantic American shares are held by institutional investors. 80.2% of Atlantic American shares are held by insiders. Comparatively, 69.8% of UTG shares are held by 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlantic American -0.75% -5.96% -1.81%
UTG N/A 2.39% 0.71%

Earnings & Valuation

This table compares Atlantic American and UTG’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlantic American $185.55 million 0.25 -$700,000.00 N/A N/A
UTG $41.27 million 2.70 $12.39 million N/A N/A

UTG has lower revenue, but higher earnings than Atlantic American.

Volatility and Risk

Atlantic American has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, UTG has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Atlantic American and UTG, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlantic American 0 0 0 0 N/A
UTG 0 0 0 0 N/A

Summary

UTG beats Atlantic American on 5 of the 9 factors compared between the two stocks.

About Atlantic American

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.

About UTG

UTG, Inc., an insurance holding company, provides individual life insurance products and services in the United States. Its individual life insurance includes servicing of existing insurance business in-force; the acquisition of other companies in the insurance business; and the administration processing of life insurance business for other entities. The company also offers reinsurance products. The company was founded in 1984 and is headquartered in Stanford, Kentucky.

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