Prudential Public (NYSE:PUK) and Fidelis Insurance (NYSE:FIHL) Critical Comparison

Fidelis Insurance (NYSE:FIHL) and Prudential Public (NYSE:PUK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Risk and Volatility

Fidelis Insurance has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, Prudential Public has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Fidelis Insurance and Prudential Public’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	-0.41%	0.20%	0.04%
Prudential Public	N/A	N/A	N/A

Institutional & Insider Ownership

82.0% of Fidelis Insurance shares are owned by institutional investors. Comparatively, 1.9% of Prudential Public shares are owned by institutional investors. 0.1% of Prudential Public shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Fidelis Insurance and Prudential Public, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	1	2	4	0	2.43
Prudential Public	0	0	4	0	3.00

Fidelis Insurance currently has a consensus target price of $20.67, indicating a potential upside of 30.00%. Given Fidelis Insurance’s higher probable upside, equities analysts clearly believe Fidelis Insurance is more favorable than Prudential Public.

Earnings and Valuation

This table compares Fidelis Insurance and Prudential Public”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.42 billion	0.73	$113.30 million	($0.13)	-122.29
Prudential Public	$16.66 billion	1.92	$2.29 billion	$2.32	10.64

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

Dividends

Fidelis Insurance pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Prudential Public pays an annual dividend of $0.65 per share and has a dividend yield of 2.6%. Fidelis Insurance pays out -307.7% of its earnings in the form of a dividend. Prudential Public pays out 28.0% 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.

Summary

Prudential Public beats Fidelis Insurance on 10 of the 15 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

About Prudential Public

Prudential plc, through its subsidiaries, provides life and health insurance, and asset management solutions to individuals in Asia and Africa. The company was founded in 1848 and is headquartered in Central, Hong Kong.