Unum Group (NYSE: UNM) is one of 31 publicly-traded companies in the “Life & Health Insurance” industry, but how does it contrast to its peers? We will compare Unum Group to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Risk & Volatility

Unum Group has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Unum Group’s peers have a beta of 1.28, indicating that their average stock price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

92.3% of Unum Group shares are owned by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 0.5% of Unum Group shares are owned by company insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Unum Group pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Unum Group pays out 22.2% 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. Unum Group has raised its dividend for 8 consecutive years.

Valuation and Earnings

This table compares Unum Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Unum Group $11.19 billion $1.66 billion 12.08
Unum Group Competitors $28.40 billion $2.33 billion 51.29

Unum Group’s peers have higher revenue and earnings than Unum Group. Unum Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Unum Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unum Group 8.57% 10.23% 1.49%
Unum Group Competitors 4.29% 1.62% 1.76%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Unum Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unum Group 1 6 1 0 2.00
Unum Group Competitors 348 1382 1896 80 2.46

Unum Group presently has a consensus target price of $47.43, suggesting a potential downside of 5.37%. As a group, “Life & Health Insurance” companies have a potential upside of 9.97%. Given Unum Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe Unum Group has less favorable growth aspects than its peers.

Summary

Unum Group peers beat Unum Group on 10 of the 15 factors compared.

Unum Group Company Profile

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.

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