Fidelis Insurance (NYSE:FIHL – Get Free Report) and Principal Financial Group (NASDAQ:PFG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Volatility and Risk
Fidelis Insurance has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Principal Financial Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Profitability
This table compares Fidelis Insurance and Principal Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fidelis Insurance | -0.56% | -0.94% | -0.18% |
| Principal Financial Group | 9.96% | 16.02% | 0.57% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fidelis Insurance | 1 | 5 | 4 | 0 | 2.30 |
| Principal Financial Group | 0 | 0 | 1 | 0 | 3.00 |
Fidelis Insurance currently has a consensus price target of $21.29, suggesting a potential upside of 10.49%. Given Fidelis Insurance’s higher possible upside, research analysts plainly believe Fidelis Insurance is more favorable than Principal Financial Group.
Insider & Institutional Ownership
82.0% of Fidelis Insurance shares are owned by institutional investors. Comparatively, 75.1% of Principal Financial Group shares are owned by institutional investors. 1.1% of Principal Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Dividends
Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Principal Financial Group pays an annual dividend of $3.16 per share and has a dividend yield of 3.4%. Fidelis Insurance pays out -1,200.0% of its earnings in the form of a dividend. Principal Financial Group pays out 46.0% 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. Principal Financial Group has increased its dividend for 2 consecutive years. Principal Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Fidelis Insurance and Principal Financial Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fidelis Insurance | $2.42 billion | 0.88 | $113.30 million | ($0.05) | -385.30 |
| Principal Financial Group | $16.13 billion | 1.27 | $1.57 billion | $6.87 | 13.36 |
Principal Financial Group has higher revenue and earnings than Fidelis Insurance. Fidelis Insurance 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.
Summary
Principal Financial Group beats Fidelis Insurance on 13 of the 17 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 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.
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