Principal Financial Group (NASDAQ:PFG) and World Access (OTCMKTS:WAXS) Financial Review

Principal Financial Group (NASDAQ:PFG) and World Access (OTCMKTS:WAXS) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

75.1% of Principal Financial Group shares are owned by institutional investors. 1.1% of Principal Financial Group shares are owned by insiders. Comparatively, 16.4% of World Access shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Principal Financial Group and World Access’ 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%
World Access	N/A	N/A	N/A

Valuation & Earnings

This table compares Principal Financial Group and World Access”s gross 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	1.09	$1.57 billion	$4.97	15.82
World Access	N/A	N/A	N/A	N/A	N/A

Principal Financial Group has higher revenue and earnings than World Access.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Principal Financial Group and World Access, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Principal Financial Group	0	1	0	0	2.00
World Access	0	0	0	0	0.00

Given World Access’ higher probable upside, analysts clearly believe World Access is more favorable than Principal Financial Group.

Summary

Principal Financial Group beats World Access on 6 of the 8 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 World Access

World Access, Inc. operates as a global services company providing solutions in customer care to organizations in the travel, financial, health care, and call center industries. It consists of three full service companies and three specialized services companies. World Access Service Corporation serves companies located in the US and companies that have travelers or employees visiting North America. World Access Canada serves companies located in Canada; and World Access Asia serves companies located in eastern Asia, including Japan. World Access Europe provides members of World Access with logistical and medical support throughout the region. Other companies include World Access Provider Network Services; and World Access Transport Services that manages and coordinates all medical evacuation and repatriation activities for World Access. The company is based in Atlanta, Georgia. In April 2001, the company filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court on behalf of itself and certain of its U.S. subsidiaries.