Head to Head Contrast: Everest Group (NYSE:EG) and Prudential Financial (NYSE:PRU)

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

Insider and Institutional Ownership

92.6% of Everest Group shares are owned by institutional investors. Comparatively, 56.8% of Prudential Financial shares are owned by institutional investors. 0.7% of Everest Group shares are owned by insiders. Comparatively, 0.1% of Prudential Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	11.76%	14.70%	3.63%
Prudential Financial	5.83%	16.33%	0.68%

Earnings & Valuation

This table compares Everest Group and Prudential Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$17.50 billion	0.80	$1.59 billion	$49.17	7.15
Prudential Financial	$57.68 billion	0.60	$3.58 billion	$9.72	10.23

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Everest Group and Prudential Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	11	5	0	2.31
Prudential Financial	6	9	0	0	1.60

Everest Group currently has a consensus target price of $371.50, indicating a potential upside of 5.62%. Prudential Financial has a consensus target price of $99.92, indicating a potential upside of 0.44%. Given Everest Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Everest Group is more favorable than Prudential Financial.

Risk & Volatility

Everest Group has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Prudential Financial has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Dividends

Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.3%. Prudential Financial pays an annual dividend of $5.60 per share and has a dividend yield of 5.6%. Everest Group pays out 16.3% of its earnings in the form of a dividend. Prudential Financial pays out 57.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Everest Group has increased its dividend for 1 consecutive years and Prudential Financial has increased its dividend for 2 consecutive years. Prudential Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Everest Group beats Prudential Financial on 10 of the 17 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.