Principal Financial Group (NYSE:PFG – Get Free Report) and CNO Financial Group (NYSE:CNO – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
This table compares Principal Financial Group and CNO Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Principal Financial Group||11.52%||15.85%||0.54%|
|CNO Financial Group||5.66%||14.49%||0.72%|
Principal Financial Group pays an annual dividend of $2.56 per share and has a dividend yield of 3.3%. CNO Financial Group pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Principal Financial Group pays out 39.6% of its earnings in the form of a dividend. CNO Financial Group pays out 31.4% 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. Principal Financial Group has increased its dividend for 1 consecutive years and CNO Financial Group has increased its dividend for 11 consecutive years.
Risk & Volatility
Institutional and Insider Ownership
70.7% of Principal Financial Group shares are held by institutional investors. Comparatively, 94.3% of CNO Financial Group shares are held by institutional investors. 0.8% of Principal Financial Group shares are held by insiders. Comparatively, 3.0% of CNO Financial Group shares are held 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.
Valuation and Earnings
This table compares Principal Financial Group and CNO Financial Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Principal Financial Group||$17.49 billion||1.08||$4.81 billion||$6.47||12.12|
|CNO Financial Group||$3.91 billion||0.69||$396.80 million||$1.91||12.45|
Principal Financial Group has higher revenue and earnings than CNO Financial Group. Principal Financial Group is trading at a lower price-to-earnings ratio than CNO Financial Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Principal Financial Group and CNO Financial Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Principal Financial Group||5||8||0||0||1.62|
|CNO Financial Group||0||4||1||0||2.20|
Principal Financial Group currently has a consensus price target of $76.46, suggesting a potential downside of 2.51%. CNO Financial Group has a consensus price target of $25.50, suggesting a potential upside of 7.23%. Given CNO Financial Group’s stronger consensus rating and higher possible upside, analysts plainly believe CNO Financial Group is more favorable than Principal Financial Group.
CNO Financial Group beats Principal Financial Group on 9 of the 17 factors compared between the two stocks.
About Principal Financial Group
Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides retirement, and related financial products and services. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products, as well as trust and custody services. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.
About CNO Financial Group
CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, insurance products, and financial services for senior and middle-income markets in the United States. It offers Medicare supplement, supplemental health, and long-term care insurance policies; life insurance; and annuities, as well as Medicare advantage plans to individuals through phone, online, mail, and face-to-face. The company also focuses on worksite and group sales for businesses, associations, and other membership groups by interacting with customers at their place of employment. In addition, it provides fixed index annuities; fixed interest annuities, including fixed rate single and flexible premium deferred annuities; single premium immediate annuities; supplemental health products, such as specified disease, accident, and hospital indemnity products; and long-term care plans primarily to retirees and older self-employed individuals in the middle-income market. Further, the company offers universal life and other interest-sensitive life products; and traditional life policies that include whole life, graded benefit life, term life, and single premium whole life products, as well as graded benefit life insurance products. CNO Financial Group, Inc. markets its products under the Bankers Life, Washington National, and Colonial Penn brand names. The company was founded in 1979 and is headquartered in Carmel, Indiana.
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