Primerica (NYSE: PRI) and Aviva Plc (NYSE:AV) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Primerica and Aviva Plc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primerica 0 4 1 0 2.20
Aviva Plc 0 1 1 0 2.50

Primerica currently has a consensus price target of $84.67, indicating a potential downside of 3.46%. Given Primerica’s higher possible upside, analysts plainly believe Primerica is more favorable than Aviva Plc.

Valuation and Earnings

This table compares Primerica and Aviva Plc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Primerica $1.62 billion 2.43 $411.75 million $4.90 17.90
Aviva Plc N/A N/A N/A N/A N/A

Primerica has higher revenue and earnings than Aviva Plc.

Volatility & Risk

Primerica has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Aviva Plc has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

94.8% of Primerica shares are held by institutional investors. Comparatively, 0.8% of Aviva Plc shares are held by institutional investors. 0.9% of Primerica shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Primerica and Aviva Plc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primerica 14.41% 18.48% 1.97%
Aviva Plc N/A N/A N/A

Dividends

Primerica pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. Aviva Plc pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. Primerica pays out 16.3% of its earnings in the form of a dividend. Primerica has raised its dividend for 6 consecutive years and Aviva Plc has raised its dividend for 3 consecutive years.

Summary

Primerica beats Aviva Plc on 8 of the 12 factors compared between the two stocks.

Primerica Company Profile

Primerica Inc. (Primerica) is a distributor of financial products to middle-income households in the United States and Canada. The Company operates through three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment includes underwriting profits on its in-force book of term life insurance policies, net of reinsurance, which are underwritten by its life insurance company subsidiaries. The Investment and Savings Products segment includes retail and managed mutual funds, and annuities distributed through licensed broker-dealer subsidiaries and includes segregated funds, an individual annuity savings product that it underwrites in Canada through Primerica Life Insurance Company of Canada (Primerica Life Canada). In the United States, it distributes mutual fund and annuity products of various third-party companies. It also earns fees for account servicing on a subset of the mutual funds it distributes.

Aviva Plc Company Profile

Aviva plc is a holding company. The Company provides customers with long-term insurance and savings, general and health insurance, and fund management products and services. Its segments include United Kingdom & Ireland; France; Poland; Italy, Spain and Other; Canada; Asia; Aviva Investors, and Other Group activities. The United Kingdom and Ireland segment consists of two operating segments: Life and General Insurance. The principal activities of its French operations are long-term business and general insurance. Its Poland Activities in Poland consist of long-term business and general insurance operations. Its Italian operations are long-term business and general insurance. The principal activity of the Canadian operation is general insurance. Its activities in Asia consist of its long-term business operations in China, India, Singapore, Hong Kong, Vietnam, Indonesia, Taiwan and international operations. The Aviva Investors segment offers a range of asset management services.

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