Comparing Principal Financial Group (PFG) and Its Rivals
Principal Financial Group (NYSE: PFG) is one of 31 publicly-traded companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its rivals? We will compare Principal Financial Group to similar businesses based on the strength of its valuation, profitability, institutional ownership, risk, earnings, analyst recommendations and dividends.
This table compares Principal Financial Group and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Principal Financial Group||10.15%||13.57%||0.63%|
|Principal Financial Group Competitors||4.81%||2.24%||1.80%|
This is a breakdown of current ratings for Principal Financial Group and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Principal Financial Group||2||4||2||0||2.00|
|Principal Financial Group Competitors||349||1386||1900||81||2.46|
Principal Financial Group presently has a consensus price target of $62.29, indicating a potential downside of 3.19%. As a group, “Life & Health Insurance” companies have a potential upside of 9.20%. Given Principal Financial Group’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Principal Financial Group has less favorable growth aspects than its rivals.
Earnings & Valuation
This table compares Principal Financial Group and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Principal Financial Group||$12.56 billion||$1.88 billion||14.62|
|Principal Financial Group Competitors||$28.59 billion||$2.35 billion||52.52|
Principal Financial Group’s rivals have higher revenue and earnings than Principal Financial Group. Principal Financial Group 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.
Principal Financial Group pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Principal Financial Group pays out 42.7% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.2% and pay out 35.9% of their earnings in the form of a dividend. Principal Financial Group has raised its dividend for 5 consecutive years.
Institutional & Insider Ownership
68.3% 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 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Principal Financial Group has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Principal Financial Group’s rivals have a beta of 1.28, meaning that their average stock price is 28% more volatile than the S&P 500.
Principal Financial Group rivals beat Principal Financial Group on 11 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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