Comparing Prudential Financial (NYSE:PRU) & International General Insurance (NASDAQ:IGIC)

International General Insurance (NASDAQ:IGIC) and Prudential Financial (NYSE:PRU) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares International General Insurance and Prudential Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$539.00 million	2.05	$135.15 million	$2.76	8.97
Prudential Financial	$68.05 billion	0.55	$2.73 billion	$7.28	14.78

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

Dividends

International General Insurance pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Prudential Financial pays an annual dividend of $5.40 per share and has a dividend yield of 5.0%. International General Insurance pays out 7.2% of its earnings in the form of a dividend. Prudential Financial pays out 74.2% 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. International General Insurance has raised its dividend for 2 consecutive years and Prudential Financial has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

54.2% of International General Insurance shares are held by institutional investors. Comparatively, 56.8% of Prudential Financial shares are held by institutional investors. 20.1% of International General Insurance shares are held by company insiders. Comparatively, 0.3% of Prudential Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

International General Insurance has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Prudential Financial has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	0	0	3	0	3.00
Prudential Financial	0	10	1	0	2.09

International General Insurance currently has a consensus price target of $30.00, suggesting a potential upside of 21.11%. Prudential Financial has a consensus price target of $120.78, suggesting a potential upside of 12.24%. Given International General Insurance’s stronger consensus rating and higher possible upside, equities research analysts plainly believe International General Insurance is more favorable than Prudential Financial.

Profitability

This table compares International General Insurance and Prudential Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International General Insurance	23.76%	18.36%	5.82%
Prudential Financial	4.65%	16.60%	0.67%

Summary

International General Insurance beats Prudential Financial on 9 of the 16 factors compared between the two stocks.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

About Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.