Unum Group (UNM) versus Prudential Public Limited (PUK) Critical Survey
Unum Group (NYSE: UNM) and Prudential Public Limited (NYSE:PUK) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.
Unum Group pays an annual dividend of $0.92 per share and has a dividend yield of 2.0%. Prudential Public Limited pays an annual dividend of $0.75 per share and has a dividend yield of 1.6%. Unum Group pays out 22.2% of its earnings in the form of a dividend. Unum Group has raised its dividend for 8 consecutive years and Prudential Public Limited has raised its dividend for 4 consecutive years. Unum Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Unum Group and Prudential Public Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prudential Public Limited||N/A||N/A||N/A|
Volatility and Risk
Unum Group has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Prudential Public Limited has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Unum Group and Prudential Public Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prudential Public Limited||0||2||3||0||2.60|
Unum Group presently has a consensus target price of $45.63, indicating a potential downside of 3.15%. Given Unum Group’s higher probable upside, analysts clearly believe Unum Group is more favorable than Prudential Public Limited.
Insider and Institutional Ownership
92.4% of Unum Group shares are held by institutional investors. Comparatively, 1.6% of Prudential Public Limited shares are held by institutional investors. 0.5% of Unum Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Unum Group and Prudential Public Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Unum Group||$11.19 billion||0.95||$1.66 billion||$4.15||11.35|
|Prudential Public Limited||$102.03 billion||0.59||$6.41 billion||N/A||N/A|
Prudential Public Limited has higher revenue and earnings than Unum Group.
Unum Group beats Prudential Public Limited on 9 of the 15 factors compared between the two stocks.
About Unum Group
Unum Group is a provider of financial protection benefits in the United States and the United Kingdom. The Company’s products include disability, life, accident, critical illness, dental and vision, and other related services. Its segments include Unum US, Unum UK, Colonial Life, Closed Block and Corporate. Its Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. Its Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include dental, individual disability and critical illness products. Its Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products issued primarily by Colonial Life & Accident Insurance Company and marketed to employees. Its Closed Block segment consists of other insurance products.
About Prudential Public Limited
Prudential Public Limited Company is an international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. Its asset management operations include Eastspring Investments, M&G and Prudential Capital.
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