Prudential Financial (NYSE:PRU – Get Free Report) and International General Insurance (NASDAQ:IGIC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Analyst Ratings
This is a summary of current ratings and recommmendations for Prudential Financial and International General Insurance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prudential Financial | 0 | 10 | 1 | 0 | 2.09 |
| International General Insurance | 0 | 0 | 3 | 0 | 3.00 |
Prudential Financial presently has a consensus price target of $120.78, suggesting a potential upside of 12.24%. International General Insurance has a consensus price target of $30.00, suggesting a potential upside of 21.11%. Given International General Insurance’s stronger consensus rating and higher probable upside, analysts clearly believe International General Insurance is more favorable than Prudential Financial.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prudential Financial | $57.93 billion | 0.65 | $2.73 billion | $7.28 | 14.78 |
| International General Insurance | $539.00 million | 2.05 | $135.15 million | $2.76 | 8.97 |
Prudential Financial has higher revenue and earnings than International General Insurance. International General Insurance is trading at a lower price-to-earnings ratio than Prudential Financial, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
56.8% of Prudential Financial shares are owned by institutional investors. Comparatively, 54.2% of International General Insurance shares are owned by institutional investors. 0.3% of Prudential Financial shares are owned by insiders. Comparatively, 20.1% of International General Insurance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
Prudential Financial pays an annual dividend of $5.40 per share and has a dividend yield of 5.0%. International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Prudential Financial pays out 74.2% of its earnings in the form of a dividend. International General Insurance pays out 7.2% 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. Prudential Financial has increased its dividend for 2 consecutive years and International General Insurance has increased its dividend for 2 consecutive years.
Risk and Volatility
Prudential Financial has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, International General Insurance has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.
Profitability
This table compares Prudential Financial and International General Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prudential Financial | 4.65% | 16.60% | 0.67% |
| International General Insurance | 23.76% | 18.36% | 5.82% |
Summary
International General Insurance beats Prudential Financial on 9 of the 16 factors compared between the two stocks.
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.
About International General Insurance
International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.
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