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

Institutional & Insider Ownership

1.7% of Prudential Public Limited shares are held by institutional investors. Comparatively, 63.6% 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, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Prudential Public Limited and Prudential Financial, as provided 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 Financial has a consensus price target of $111.18, indicating a potential upside of 5.68%. Given Prudential Financial’s higher possible 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%

Volatility & Risk

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

Earnings and Valuation

This table compares Prudential Public Limited and Prudential Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prudential Public Limited $104.74 billion 0.58 $6.61 billion N/A N/A
Prudential Financial $59.25 billion 0.76 $7.12 billion $8.92 11.79

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 2.9%. 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.

Summary

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

About Prudential Public Limited

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.

About Prudential Financial

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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