Prudential Financial (NYSE:PRU – Get Free Report) and SelectQuote (NYSE:SLQT – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Volatility and Risk
Prudential Financial has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, SelectQuote has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Prudential Financial and SelectQuote, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prudential Financial | 5 | 11 | 1 | 0 | 1.76 |
| SelectQuote | 2 | 1 | 0 | 1 | 2.00 |
Valuation and Earnings
This table compares Prudential Financial and SelectQuote”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prudential Financial | $57.68 billion | 0.72 | $3.58 billion | $11.04 | 10.95 |
| SelectQuote | $1.62 billion | 0.06 | $62.19 million | ($0.08) | -6.44 |
Prudential Financial has higher revenue and earnings than SelectQuote. SelectQuote 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 held by institutional investors. Comparatively, 34.6% of SelectQuote shares are held by institutional investors. 0.1% of Prudential Financial shares are held by company insiders. Comparatively, 13.1% of SelectQuote shares are held by company 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.
Profitability
This table compares Prudential Financial and SelectQuote’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prudential Financial | 6.51% | 16.68% | 0.70% |
| SelectQuote | 3.84% | 19.70% | 5.33% |
Summary
Prudential Financial beats SelectQuote on 8 of the 15 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 SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
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