Principal Financial Group (NYSE: PFG) is one of 25 public companies in the “Life & Health Insurance” industry, but how does it contrast to its competitors? We will compare Principal Financial Group to similar companies based on the strength of its earnings, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.
Insider and Institutional Ownership
68.0% of Principal Financial Group shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 1.5% of Principal Financial Group shares are held by insiders. Comparatively, 9.6% 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 stock is poised for long-term growth.
Volatility & Risk
Principal Financial Group has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Principal Financial Group’s competitors have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Principal Financial Group and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Principal Financial Group||1||6||2||0||2.11|
|Principal Financial Group Competitors||234||1143||1708||81||2.52|
Principal Financial Group presently has a consensus target price of $66.78, suggesting a potential downside of 1.84%. As a group, “Life & Health Insurance” companies have a potential upside of 7.58%. Given Principal Financial Group’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Principal Financial Group has less favorable growth aspects than its competitors.
Valuation and Earnings
This table compares Principal Financial Group and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Principal Financial Group||$12.38 billion||$1.32 billion||11.15|
|Principal Financial Group Competitors||$26.01 billion||$1.31 billion||-450.90|
Principal Financial Group’s competitors have higher revenue, but lower earnings than Principal Financial Group. Principal Financial Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Principal Financial Group pays an annual dividend of $1.88 per share and has a dividend yield of 2.8%. Principal Financial Group pays out 30.8% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.0% and pay out 30.9% of their earnings in the form of a dividend. Principal Financial Group has raised its dividend for 5 consecutive years. Principal Financial Group is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares Principal Financial Group and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Principal Financial Group||12.35%||13.55%||0.63%|
|Principal Financial Group Competitors||5.76%||2.59%||1.35%|
Principal Financial Group competitors beat Principal Financial Group on 8 of the 15 factors compared.
Principal Financial Group Company Profile
Principal Financial Group, Inc. is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance. Its segments include Retirement and Income Solutions; Principal Global Investors, Principal International; U.S. Insurance Solutions, and Corporate. The Company offers a portfolio of products and services for retirement savings and retirement income. The Company’s Principal Global Investors segment manages assets for investors around the world. The Company offers pension accumulation products and services, mutual funds, asset management, income annuities and life insurance accumulation products. The Company’s U.S. Insurance Solutions segment provides group and individual insurance solutions. It focuses on small and medium-sized businesses, providing a range of retirement and employee benefit solutions, and individual insurance solutions to meet the needs of the business owners and their employees.
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