Head-To-Head Analysis: AA (OTCMKTS:AATDF) versus CNO Financial Group (NYSE:CNO)

CNO Financial Group (NYSE:CNO) and AA (OTCMKTS:AATDF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for CNO Financial Group and AA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNO Financial Group	0	2	3	0	2.60
AA	0	0	0	0	0.00

CNO Financial Group currently has a consensus target price of $48.75, suggesting a potential downside of 4.30%. Given CNO Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe CNO Financial Group is more favorable than AA.

Valuation and Earnings

This table compares CNO Financial Group and AA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNO Financial Group	$4.49 billion	1.06	$229.30 million	$2.49	20.46
AA	N/A	N/A	N/A	N/A	N/A

CNO Financial Group has higher revenue and earnings than AA.

Insider & Institutional Ownership

95.4% of CNO Financial Group shares are owned by institutional investors. 3.4% of CNO Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CNO Financial Group and AA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNO Financial Group	5.44%	17.65%	1.18%
AA	N/A	N/A	N/A

Summary

CNO Financial Group beats AA on 9 of the 9 factors compared between the two stocks.

About CNO Financial Group

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, insurance products, and financial services for senior and middle-income markets in the United States. It offers Medicare supplement, supplemental health, and long-term care insurance policies; life insurance; and annuities, as well as Medicare advantage plans to individuals through phone, online, mail, and face-to-face. The company also focuses on sale of voluntary benefit life and health insurance products for businesses, associations, and other membership groups by interacting with customers at their place of employment. In addition, it provides fixed indexed annuities; fixed interest annuities, including fixed rate single and flexible premium deferred annuities; single premium immediate annuities; supplemental health products, such as specified disease, accident, and hospital indemnity products; and long-term care plans primarily to retirees and older self-employed individuals in the middle-income market. Further, the company offers universal life and other interest-sensitive life products; and traditional life policies that include whole life, graded benefit life, term life, and single premium whole life products, as well as graded benefit life insurance products. It markets its products under the Bankers Life, Washington National, and Colonial Penn brand names. The company was founded in 1979 and is headquartered in Carmel, Indiana.

About AA

AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.