Allstate (NYSE:ALL) & Jackson Financial (NYSE:JXN) Critical Contrast

Allstate (NYSE:ALL) and Jackson Financial (NYSE:JXN) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Allstate and Jackson Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allstate	4	9	5	4	2.41
Jackson Financial	0	4	2	1	2.57

Allstate presently has a consensus price target of $263.90, suggesting a potential upside of 4.11%. Jackson Financial has a consensus price target of $133.80, suggesting a potential downside of 2.94%. Given Allstate’s higher probable upside, equities research analysts clearly believe Allstate is more favorable than Jackson Financial.

Valuation and Earnings

This table compares Allstate and Jackson Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allstate	$67.69 billion	0.95	$10.28 billion	$50.08	5.06
Jackson Financial	$6.34 billion	1.47	$27.00 million	$0.71	194.16

Allstate has higher revenue and earnings than Jackson Financial. Allstate is trading at a lower price-to-earnings ratio than Jackson Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Allstate pays an annual dividend of $4.32 per share and has a dividend yield of 1.7%. Jackson Financial pays an annual dividend of $3.60 per share and has a dividend yield of 2.6%. Allstate pays out 8.6% of its earnings in the form of a dividend. Jackson Financial pays out 507.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Allstate has increased its dividend for 15 consecutive years and Jackson Financial has increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

76.5% of Allstate shares are owned by institutional investors. Comparatively, 90.0% of Jackson Financial shares are owned by institutional investors. 1.5% of Allstate shares are owned by insiders. Comparatively, 1.4% of Jackson Financial shares are owned 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 Allstate and Jackson Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allstate	18.97%	41.64%	9.82%
Jackson Financial	1.59%	18.93%	0.52%

Volatility and Risk

Allstate has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Jackson Financial has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.

Summary

Allstate beats Jackson Financial on 12 of the 18 factors compared between the two stocks.

About Allstate

The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. It operates in five segments: Allstate Protection; Protection Services; Allstate Health and Benefits; Run-off Property-Liability; and Corporate and Other segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; other personal lines products; and commercial lines products through agents, contact centers, and online. The Protection Services segment provides consumer product protection; protection and insurance products, including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel, and paintless dent repair protection; and roadside assistance, device and mobile data collection services, and analytic solutions using automotive telematics information, as well as identity theft protection and remediation services. This segment also offers its products under various brands, including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity, Avail, and Allstate Identity Protection. The Allstate Health and Benefits segment provides life, accident, critical illness, short-term disability, and other health insurance products; stop-loss and fully insured group health products to employers; and short-term medical and medicare supplement insurance to individuals. The Run-off Property-Liability segment offers property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. The Corporate and Other segment provides debt services, as well as non-insurance operations. It sells its products through agents, independent agents, call and contact centers, retailers, direct to consumer, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.

About Jackson Financial

Jackson Financial Inc., through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities; and a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, independent registered investment advisors, third-party platforms, and insurance agents. The company was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. Jackson Financial Inc. was incorporated in 2006 and is headquartered in Lansing, Michigan.