Principal Financial Group (NASDAQ:PFG) and Ping An Insurance Co. of China (OTCMKTS:PNGAY) Head-To-Head Contrast

Principal Financial Group (NASDAQ:PFG) and Ping An Insurance Co. of China (OTCMKTS:PNGAY) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Risk & Volatility

Principal Financial Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Ping An Insurance Co. of China has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Valuation & Earnings

This table compares Principal Financial Group and Ping An Insurance Co. of China”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Financial Group	$16.13 billion	1.10	$1.57 billion	$4.97	16.09
Ping An Insurance Co. of China	$158.77 billion	0.81	$17.61 billion	$1.83	7.74

Ping An Insurance Co. of China has higher revenue and earnings than Principal Financial Group. Ping An Insurance Co. of China is trading at a lower price-to-earnings ratio than Principal Financial Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.1% of Principal Financial Group shares are owned by institutional investors. Comparatively, 0.0% of Ping An Insurance Co. of China shares are owned by institutional investors. 1.1% of Principal Financial Group shares are owned by company insiders. Comparatively, 0.1% of Ping An Insurance Co. of China shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Principal Financial Group pays an annual dividend of $3.12 per share and has a dividend yield of 3.9%. Ping An Insurance Co. of China pays an annual dividend of $0.77 per share and has a dividend yield of 5.4%. Principal Financial Group pays out 62.8% of its earnings in the form of a dividend. Ping An Insurance Co. of China pays out 42.1% 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 raised its dividend for 2 consecutive years. Ping An Insurance Co. of China is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for Principal Financial Group and Ping An Insurance Co. of China, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Principal Financial Group	0	0	0	0	0.00
Ping An Insurance Co. of China	0	1	0	0	2.00

Profitability

This table compares Principal Financial Group and Ping An Insurance Co. of China’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Principal Financial Group	7.53%	15.63%	0.55%
Ping An Insurance Co. of China	10.59%	9.18%	0.93%

Summary

Principal Financial Group beats Ping An Insurance Co. of China on 8 of the 15 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 a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension 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. 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, India, 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 Ping An Insurance Co. of China

Ping An Insurance (Group) Company of China, Ltd. provides financial products and services for insurance, banking, asset management, and technology businesses in the People's Republic of China. The company operates through Life and Health Insurance; Property and Casualty Insurance; Banking; Asset Management; and Technology segments. Its Life and Health Insurance segment offers term, whole-life, endowment, annuity, investment-linked, universal life, and health care and medical insurance to individual and corporate customers. The company's Property and Casualty Insurance segment provides auto, non-auto, and accident and health insurance to individual and corporate customers. Its Banking segment undertakes loan and intermediary businesses with corporate and retail customers; and offers wealth management and credit card services to individual customers. The company's Asset Management segment provides trust products services, brokerage services, trading services, investment banking services, investment management, finance lease, and other asset management services. Its Technology segment offers financial and daily-life services through internet platforms, such as financial transaction information service, and health care service platforms. The company also provides annuity insurance, IT and business process outsourcing, real estate investment and management, futures brokerage, project investment, currency brokerage, property agency, fund raising and distribution, real estate development and leasing, and insurance agency services. In addition, it provides factoring, equity investment, logistics and warehousing, management consulting, e-commerce, and credit information services; and operates an expressway, as well as produces and sells consumer chemicals. The company was incorporated in 1988 and is based in Shenzhen, China.