Aflac (AFL) vs. Its Peers Head-To-Head Analysis

Aflac (NYSE: AFL) is one of 31 public companies in the “Life & Health Insurance” industry, but how does it compare to its peers? We will compare Aflac to related companies based on the strength of its risk, analyst recommendations, profitability, earnings, valuation, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Aflac and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aflac 3 6 2 0 1.91
Aflac Competitors 348 1376 1887 80 2.46

Aflac currently has a consensus target price of $75.56, indicating a potential downside of 8.76%. As a group, “Life & Health Insurance” companies have a potential upside of 11.20%. Given Aflac’s peers stronger consensus rating and higher probable upside, analysts clearly believe Aflac has less favorable growth aspects than its peers.

Risk and Volatility

Aflac has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Aflac’s peers have a beta of 1.28, suggesting that their average share price is 28% more volatile than the S&P 500.

Dividends

Aflac pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. Aflac pays out 25.9% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.3% and pay out 35.9% of their earnings in the form of a dividend. Aflac has increased its dividend for 34 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Aflac 11.98% 13.09% 2.05%
Aflac Competitors 4.00% 1.18% 1.80%

Insider & Institutional Ownership

65.7% of Aflac shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 3.0% of Aflac shares are held by company insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Aflac and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aflac $22.65 billion $4.75 billion 12.49
Aflac Competitors $28.39 billion $2.33 billion 49.31

Aflac’s peers have higher revenue, but lower earnings than Aflac. Aflac 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.

Summary

Aflac peers beat Aflac on 10 of the 15 factors compared.

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.

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