Prudential Financial (PRU) versus The Competition Head to Head Review

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

Institutional and Insider Ownership

64.5% of Prudential Financial shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 0.7% of Prudential Financial 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Prudential Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prudential Financial 7.15% 8.98% 0.56%
Prudential Financial Competitors 4.29% 1.62% 1.76%

Dividends

Prudential Financial pays an annual dividend of $3.00 per share and has a dividend yield of 2.9%. Prudential Financial pays out 33.6% 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. Prudential Financial has raised its dividend for 8 consecutive years. Prudential Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Prudential Financial and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Financial 0 7 5 0 2.42
Prudential Financial Competitors 348 1382 1898 80 2.46

Prudential Financial presently has a consensus target price of $113.40, indicating a potential upside of 8.00%. As a group, “Life & Health Insurance” companies have a potential upside of 10.17%. Given Prudential Financial’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Prudential Financial has less favorable growth aspects than its rivals.

Volatility & Risk

Prudential Financial has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Prudential Financial’s rivals have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Earnings and Valuation

This table compares Prudential Financial and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Prudential Financial $59.25 billion $7.12 billion 11.77
Prudential Financial Competitors $28.59 billion $2.35 billion 51.29

Prudential Financial has higher revenue and earnings than its rivals. Prudential Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Prudential Financial rivals beat Prudential Financial on 8 of the 15 factors compared.

Prudential Financial Company Profile

Prudential Financial, Inc., is a financial services company. The Company, through its subsidiaries, offers a range of financial products and services, which includes life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s operations consists of four divisions, which together encompass seven segments. The U.S. Retirement Solutions and Investment Management division consists of Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of Individual Life and Group Insurance segments. The International Insurance division consists of International Insurance segment. The Closed Block division consists of Closed Block segment. The Company has operations in the United States, Asia, Europe and Latin America.

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