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

Earnings and Valuation

This table compares Unum Group and Prudential Public Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Unum Group $11.19 billion 0.98 $1.66 billion $4.15 11.67
Prudential Public Limited $102.51 billion 0.59 $6.44 billion N/A N/A

Prudential Public Limited has higher revenue and earnings than Unum Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Unum Group 8.57% 10.23% 1.49%
Prudential Public Limited N/A N/A N/A

Risk & Volatility

Unum Group has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Prudential Public Limited has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Unum Group and Prudential Public Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unum Group 2 6 1 0 1.89
Prudential Public Limited 0 2 3 0 2.60

Unum Group currently has a consensus target price of $45.63, indicating a potential downside of 5.79%. Given Unum Group’s higher probable upside, equities research analysts plainly believe Unum Group is more favorable than Prudential Public Limited.

Institutional & Insider Ownership

92.4% of Unum Group shares are held by institutional investors. Comparatively, 1.6% of Prudential Public Limited shares are held by institutional investors. 0.5% of Unum Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Unum Group pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. Prudential Public Limited pays an annual dividend of $0.75 per share and has a dividend yield of 1.6%. Unum Group pays out 22.2% of its earnings in the form of a dividend. Unum Group has increased its dividend for 8 consecutive years and Prudential Public Limited has increased its dividend for 4 consecutive years. Unum Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

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

About Unum Group

Unum Group is a provider of financial protection benefits in the United States and the United Kingdom. The Company’s products include disability, life, accident, critical illness, dental and vision, and other related services. Its segments include Unum US, Unum UK, Colonial Life, Closed Block and Corporate. Its Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. Its Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include dental, individual disability and critical illness products. Its Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products issued primarily by Colonial Life & Accident Insurance Company and marketed to employees. Its Closed Block segment consists of other insurance products.

About Prudential Public Limited

Prudential Public Limited Company is an 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. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. Its asset management operations include Eastspring Investments, M&G and Prudential Capital.

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