Aflac (NYSE: AFL) and Prudential Public Limited (NYSE:PUK) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk and Volatility

Aflac has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Prudential Public Limited has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Dividends

Aflac pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. Prudential Public Limited pays an annual dividend of $0.78 per share and has a dividend yield of 1.6%. Aflac pays out 26.1% of its earnings in the form of a dividend. Aflac has raised its dividend for 34 consecutive years and Prudential Public Limited has raised its dividend for 4 consecutive years. Aflac is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Aflac and Prudential Public Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aflac 12.49% 12.87% 2.03%
Prudential Public Limited N/A N/A N/A

Insider & Institutional Ownership

66.3% of Aflac shares are owned by institutional investors. Comparatively, 1.6% of Prudential Public Limited shares are owned by institutional investors. 3.0% of Aflac shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Aflac and Prudential Public Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aflac 3 7 2 0 1.92
Prudential Public Limited 0 2 2 0 2.50

Aflac currently has a consensus target price of $78.40, suggesting a potential downside of 7.82%. Given Aflac’s higher probable upside, equities research analysts plainly believe Aflac is more favorable than Prudential Public Limited.

Earnings and Valuation

This table compares Aflac and Prudential Public Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aflac $22.56 billion 1.48 $2.66 billion $6.90 12.33
Prudential Public Limited $97.42 billion 0.66 $2.60 billion N/A N/A

Aflac has higher revenue, but lower earnings than Prudential Public Limited.

Summary

Aflac beats Prudential Public Limited on 10 of the 14 factors compared between the two stocks.

About Aflac

Aflac Incorporated is a business holding company. The Company is involved in supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac). The Company’s insurance business consists of two segments: Aflac Japan and Aflac U.S. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans.

About Prudential Public Limited

Prudential Public Limited Company is an international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. Its asset management operations include Eastspring Investments, M&G and Prudential Capital.

Receive News & Ratings for Aflac Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aflac Incorporated and related companies with MarketBeat.com's FREE daily email newsletter.