Comparing Prudential Financial (PRU) and Its Rivals
Prudential Financial (NYSE: PRU) is one of 29 publicly-traded companies in the “Life & Health Insurance” industry, but how does it contrast to its competitors? We will compare Prudential Financial to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.
Earnings & Valuation
This table compares Prudential Financial and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Prudential Financial||$59.25 billion||$7.12 billion||12.25|
|Prudential Financial Competitors||$28.59 billion||$2.35 billion||53.18|
Prudential Financial has higher revenue and earnings than its competitors. Prudential Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Prudential Financial has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Prudential Financial’s competitors have a beta of 1.29, meaning 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 competitors, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
64.5% of Prudential Financial shares are owned by institutional investors. Comparatively, 68.4% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Prudential Financial and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prudential Financial Competitors||5.21%||1.96%||1.96%|
This is a summary of recent ratings and target prices for Prudential Financial and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prudential Financial Competitors||231||1111||1663||80||2.52|
Prudential Financial currently has a consensus price target of $114.70, indicating a potential upside of 4.98%. As a group, “Life & Health Insurance” companies have a potential upside of 9.52%. Given Prudential Financial’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Prudential Financial has less favorable growth aspects than its competitors.
Prudential Financial competitors beat Prudential Financial on 8 of the 15 factors compared.
About Prudential Financial
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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