Prudential Financial (NYSE: PRU) is one of 29 publicly-traded companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its rivals? We will compare Prudential Financial to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
This table compares Prudential Financial and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prudential Financial Competitors||4.84%||0.77%||1.23%|
Institutional & Insider Ownership
64.4% of Prudential Financial shares are owned by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 0.7% of Prudential Financial shares are owned by insiders. Comparatively, 9.6% of shares of all “Life & Health Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Prudential Financial and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Prudential Financial||$59.25 billion||$7.12 billion||12.29|
|Prudential Financial Competitors||$28.59 billion||$2.35 billion||53.78|
Prudential Financial has higher revenue and earnings than its rivals. Prudential Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Prudential Financial has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, Prudential Financial’s rivals have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.
Prudential Financial pays an annual dividend of $3.00 per share and has a dividend yield of 2.7%. Prudential Financial pays out 33.6% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.2% and pay out 35.9% of their earnings in the form of a dividend. Prudential Financial has increased its dividend for 8 consecutive years. Prudential Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This is a breakdown of current recommendations and price targets for Prudential Financial and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prudential Financial Competitors||234||1121||1679||81||2.52|
Prudential Financial presently has a consensus target price of $115.00, indicating a potential upside of 4.93%. As a group, “Life & Health Insurance” companies have a potential upside of 8.63%. Given Prudential Financial’s rivals higher possible upside, analysts plainly believe Prudential Financial has less favorable growth aspects than its rivals.
Prudential Financial beats its rivals on 8 of the 15 factors compared.
Prudential Financial Company Profile
Prudential Financial, Inc., is a financial services company. The Company, through its subsidiaries, offers a range of financial products and services, which includes life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s operations consists of four divisions, which together encompass seven segments. The U.S. Retirement Solutions and Investment Management division consists of Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of Individual Life and Group Insurance segments. The International Insurance division consists of International Insurance segment. The Closed Block division consists of Closed Block segment. The Company has operations in the United States, Asia, Europe and Latin America.
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