Prudential Public Limited (NYSE: PUK) and Prudential Financial (NYSE:PRU) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitabiliy, valuation, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

1.7% of Prudential Public Limited shares are held by institutional investors. Comparatively, 63.5% of Prudential Financial shares are held by institutional investors. 0.7% of Prudential Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Prudential Public Limited and Prudential Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Public Limited 0 2 3 0 2.60
Prudential Financial 0 7 6 0 2.46

Prudential Public Limited currently has a consensus target price of $0.00, suggesting a potential downside of 100.00%. Prudential Financial has a consensus target price of $111.18, suggesting a potential upside of 4.83%. Given Prudential Financial’s higher probable upside, analysts clearly believe Prudential Financial is more favorable than Prudential Public Limited.

Profitability

This table compares Prudential Public Limited and Prudential Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prudential Public Limited N/A N/A N/A
Prudential Financial 7.15% 8.98% 0.56%

Valuation and Earnings

This table compares Prudential Public Limited and Prudential Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prudential Public Limited $94.88 billion 0.64 $5.01 billion N/A N/A
Prudential Financial $59.25 billion 0.77 $7.12 billion $8.92 11.89

Prudential Financial has higher revenue, but lower earnings than Prudential Public Limited.

Dividends

Prudential Public Limited pays an annual dividend of $1.59 per share and has a dividend yield of 3.4%. Prudential Financial pays an annual dividend of $3.00 per share and has a dividend yield of 2.8%. Prudential Financial pays out 33.6% of its earnings in the form of a dividend. Prudential Public Limited has raised its dividend for 8 consecutive years and Prudential Financial has raised its dividend for 4 consecutive years. Prudential Public Limited is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Prudential Public Limited has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Prudential Financial has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Summary

Prudential Financial beats Prudential Public Limited on 9 of the 16 factors compared between the two stocks.

Prudential Public Limited Company Profile

Prudential Public Limited Company (Prudential) is a United Kingdom-based international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. The Company’s insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. The Company’s asset management operations include Eastspring Investments, US broker-dealer and asset management, M&G and Prudential Capital. Eastspring Investments is an asset manager in Asia and provides investment solutions across a range of asset classes.

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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