Aflac (AFL) and The Competition Head-To-Head Comparison

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Aflac and its competitors, 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 1382 1896 80 2.46

Aflac presently has a consensus target price of $75.56, suggesting a potential downside of 9.99%. As a group, “Life & Health Insurance” companies have a potential upside of 9.89%. Given Aflac’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Aflac has less favorable growth aspects than its competitors.

Risk & Volatility

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

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Aflac $22.65 billion $4.75 billion 12.66
Aflac Competitors $28.40 billion $2.33 billion 51.29

Aflac’s competitors have higher revenue, but lower earnings than Aflac. Aflac is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Aflac pays an annual dividend of $1.72 per share and has a dividend yield of 2.0%. 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 competitors’ 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 4.29% 1.62% 1.76%

Institutional and Insider Ownership

65.6% of Aflac shares are held by institutional investors. Comparatively, 68.3% of shares of all “Life & Health Insurance” companies are held by institutional investors. 3.0% of Aflac shares are held by insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are held by 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.

Summary

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

Aflac Company Profile

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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