Financial Survey: Fidelis Insurance (NYSE:FIHL) and Prudential Financial (NYSE:PRU)

Prudential Financial (NYSE:PRU) and Fidelis Insurance (NYSE:FIHL) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prudential Financial	6.20%	16.32%	0.68%
Fidelis Insurance	-0.56%	-0.94%	-0.18%

Analyst Ratings

This is a summary of current ratings and target prices for Prudential Financial and Fidelis Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prudential Financial	0	10	1	0	2.09
Fidelis Insurance	2	4	4	0	2.20

Prudential Financial presently has a consensus target price of $117.11, suggesting a potential upside of 16.12%. Fidelis Insurance has a consensus target price of $22.21, suggesting a potential upside of 10.68%. Given Prudential Financial’s higher probable upside, equities research analysts plainly believe Prudential Financial is more favorable than Fidelis Insurance.

Risk & Volatility

Prudential Financial has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Fidelis Insurance has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Earnings & Valuation

This table compares Prudential Financial and Fidelis Insurance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prudential Financial	$57.68 billion	0.61	$3.58 billion	$10.00	10.09
Fidelis Insurance	$2.42 billion	0.92	$113.30 million	($0.05)	-401.40

Prudential Financial has higher revenue and earnings than Fidelis Insurance. Fidelis 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

Prudential Financial pays an annual dividend of $5.60 per share and has a dividend yield of 5.6%. Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Prudential Financial pays out 56.0% of its earnings in the form of a dividend. Fidelis Insurance pays out -1,200.0% 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. Prudential Financial has raised its dividend for 2 consecutive years. Prudential Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

56.8% of Prudential Financial shares are held by institutional investors. Comparatively, 82.0% of Fidelis Insurance shares are held by institutional investors. 0.3% of Prudential Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Prudential Financial beats Fidelis Insurance on 12 of the 17 factors compared between the two stocks.

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.

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.