Prudential Financial (NYSE: PRU) is one of 29 public companies in the “Life & Health Insurance” industry, but how does it contrast to its peers? We will compare Prudential Financial to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.

Insider and Institutional Ownership

64.4% of Prudential Financial shares are owned by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 0.7% of Prudential Financial shares are owned by company insiders. Comparatively, 9.6% of shares of all “Life & Health Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

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 raised its dividend for 8 consecutive years. Prudential Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Prudential Financial $59.25 billion $7.12 billion 12.42
Prudential Financial Competitors $28.59 billion $2.35 billion 53.97

Prudential Financial has higher revenue and earnings than its peers. Prudential Financial 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.

Risk & Volatility

Prudential Financial has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Prudential Financial’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Prudential Financial and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Financial 0 6 7 0 2.54
Prudential Financial Competitors 234 1122 1679 81 2.52

Prudential Financial currently has a consensus price target of $115.00, indicating a potential upside of 3.81%. As a group, “Life & Health Insurance” companies have a potential upside of 7.95%. Given Prudential Financial’s peers higher possible upside, analysts clearly believe Prudential Financial has less favorable growth aspects than its peers.

Profitability

This table compares Prudential Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prudential Financial 7.15% 8.98% 0.56%
Prudential Financial Competitors 4.84% 0.77% 1.23%

Summary

Prudential Financial beats its peers on 8 of the 15 factors compared.

Prudential Financial Company Profile

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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