Reviewing EverQuote (NASDAQ:EVER) and Principal Financial Group (NASDAQ:PFG)

Principal Financial Group (NASDAQ:PFGGet Free Report) and EverQuote (NASDAQ:EVERGet Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Principal Financial Group and EverQuote”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Principal Financial Group $15.63 billion 1.31 $1.19 billion $5.27 17.45
EverQuote $500.19 million 1.03 $32.17 million $1.43 10.06

Principal Financial Group has higher revenue and earnings than EverQuote. EverQuote 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.

Profitability

This table compares Principal Financial Group and EverQuote’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Principal Financial Group 7.58% 16.09% 0.57%
EverQuote 8.36% 38.19% 25.60%

Risk & Volatility

Principal Financial Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Principal Financial Group and EverQuote, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Principal Financial Group 0 0 1 0 3.00
EverQuote 0 1 4 1 3.00

EverQuote has a consensus target price of $30.00, indicating a potential upside of 108.48%. Given EverQuote’s higher probable upside, analysts clearly believe EverQuote is more favorable than Principal Financial Group.

Insider and Institutional Ownership

75.1% of Principal Financial Group shares are owned by institutional investors. Comparatively, 91.5% of EverQuote shares are owned by institutional investors. 1.1% of Principal Financial Group shares are owned by company insiders. Comparatively, 25.5% of EverQuote shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

EverQuote beats Principal Financial Group on 8 of the 14 factors compared between the two stocks.

About Principal Financial Group

(Get Free Report)

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 EverQuote

(Get Free Report)

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

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