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

Institutional & Insider Ownership

68.2% of Principal Financial Group shares are held by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are held by institutional investors. 1.5% of Principal Financial Group shares are held by insiders. Comparatively, 9.6% of shares of all “Life & Health Insurance” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Principal Financial Group 10.15% 13.57% 0.63%
Principal Financial Group Competitors 4.84% 0.77% 1.23%

Volatility and Risk

Principal Financial Group has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Principal Financial Group’s peers have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.

Earnings and Valuation

This table compares Principal Financial Group and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Principal Financial Group $12.56 billion $1.88 billion 15.52
Principal Financial Group Competitors $28.59 billion $2.35 billion 54.15

Principal Financial Group’s peers have higher revenue and earnings than Principal Financial Group. Principal Financial 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Principal Financial Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Principal Financial Group 1 6 2 0 2.11
Principal Financial Group Competitors 234 1122 1680 81 2.52

Principal Financial Group currently has a consensus price target of $66.78, suggesting a potential downside of 2.19%. As a group, “Life & Health Insurance” companies have a potential upside of 6.24%. Given Principal Financial Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Principal Financial Group has less favorable growth aspects than its peers.

Dividends

Principal Financial Group pays an annual dividend of $1.88 per share and has a dividend yield of 2.8%. Principal Financial Group pays out 42.7% 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. Principal Financial Group has increased its dividend for 5 consecutive years.

Summary

Principal Financial Group peers beat Principal Financial Group on 11 of the 15 factors compared.

Principal Financial Group Company Profile

Principal Financial Group, Inc. is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance. Its segments include Retirement and Income Solutions; Principal Global Investors, Principal International; U.S. Insurance Solutions, and Corporate. The Company offers a portfolio of products and services for retirement savings and retirement income. The Company’s Principal Global Investors segment manages assets for investors around the world. The Company offers pension accumulation products and services, mutual funds, asset management, income annuities and life insurance accumulation products. The Company’s U.S. Insurance Solutions segment provides group and individual insurance solutions. It focuses on small and medium-sized businesses, providing a range of retirement and employee benefit solutions, and individual insurance solutions to meet the needs of the business owners and their employees.

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