Aflac (NYSE: AFL) is one of 31 public companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its rivals? We will compare Aflac to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Aflac and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aflac $22.65 billion $4.75 billion 12.49
Aflac Competitors $28.39 billion $2.33 billion 49.31

Aflac’s rivals have higher revenue, but lower earnings than Aflac. Aflac 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.

Profitability

This table compares Aflac and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aflac 11.98% 13.09% 2.05%
Aflac Competitors 4.00% 1.18% 1.80%

Volatility and Risk

Aflac has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Aflac’s rivals have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.

Dividends

Aflac pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. Aflac pays out 25.9% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.3% and pay out 35.9% of their earnings in the form of a dividend. Aflac has increased its dividend for 34 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aflac and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aflac 3 6 2 0 1.91
Aflac Competitors 348 1376 1887 80 2.46

Aflac currently has a consensus target price of $75.56, indicating a potential downside of 8.76%. As a group, “Life & Health Insurance” companies have a potential upside of 11.20%. Given Aflac’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Aflac has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

65.7% of Aflac shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 3.0% of Aflac shares are held by company insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Aflac rivals beat Aflac on 10 of the 15 factors compared.

About Aflac

Aflac Incorporated is a business holding company. The Company is involved in supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac). The Company’s insurance business consists of two segments: Aflac Japan and Aflac U.S. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans.

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