Legal & General Group (OTCMKTS:LGGNY) versus Puhui Wealth Investment Management (NASDAQ:PHCF) Financial Analysis

Legal & General Group (OTCMKTS:LGGNY) and Puhui Wealth Investment Management (NASDAQ:PHCF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Risk and Volatility

Legal & General Group has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Puhui Wealth Investment Management has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares Legal & General Group and Puhui Wealth Investment Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legal & General Group	N/A	N/A	N/A
Puhui Wealth Investment Management	N/A	N/A	N/A

Institutional and Insider Ownership

0.0% of Legal & General Group shares are held by institutional investors. Comparatively, 0.6% of Puhui Wealth Investment Management shares are held by institutional investors. 48.2% of Puhui Wealth Investment Management 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.

Earnings and Valuation

This table compares Legal & General Group and Puhui Wealth Investment Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legal & General Group	$11.97 billion	1.43	$568.46 million	N/A	N/A
Puhui Wealth Investment Management	$2.44 million	0.00	-$4.74 million	N/A	N/A

Legal & General Group has higher revenue and earnings than Puhui Wealth Investment Management.

Analyst Recommendations

This is a summary of current recommendations for Legal & General Group and Puhui Wealth Investment Management, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legal & General Group	0	0	0	3	4.00
Puhui Wealth Investment Management	0	0	0	0	0.00

Given Puhui Wealth Investment Management’s higher possible upside, analysts clearly believe Puhui Wealth Investment Management is more favorable than Legal & General Group.

Summary

Legal & General Group beats Puhui Wealth Investment Management on 5 of the 8 factors compared between the two stocks.

About Legal & General Group

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets. The LGC segment provides investment strategy and implementation, and direct investment and structuring services. The Retail segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; annuities; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions. It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses. In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services. Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

About Puhui Wealth Investment Management

Puhui Wealth Investment Management Co. Ltd. is a third-party wealth management service provider. It focuses on marketing financial products and managing funds for individuals and corporate clients in the People’s Republic of China. The company was founded by Zhe Ji in 2013 and is headquartered in Dong Cheng, China.