Head to Head Review: Aflac (AFL) & The Competition

Aflac (NYSE: AFL) is one of 31 publicly-traded companies in the “Life & Health Insurance” industry, but how does it contrast to its rivals? We will compare Aflac to similar businesses based off the strength of its analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

65.7% of Aflac shares are owned by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 3.0% of Aflac shares are owned by company insiders. Comparatively, 9.5% of shares of all “Life & Health Insurance” companies are owned 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aflac and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aflac 3 6 2 0 1.91
Aflac Competitors 347 1370 1881 80 2.46

Aflac currently has a consensus target price of $75.56, suggesting a potential downside of 8.38%. All “Life & Health Insurance” companies have a potential upside of 8.89%. Given Aflac’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Aflac has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Aflac and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Aflac $22.65 billion $4.75 billion 12.44
Aflac Competitors $28.24 billion $2.32 billion 48.40

Aflac’s rivals have higher revenue, but lower earnings than Aflac. Aflac is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.

Dividends

Aflac pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. Aflac pays out 25.9% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.4% and pay out 35.9% of their earnings in the form of a dividend. Aflac has increased its dividend for 34 consecutive years.

Profitability

This table compares Aflac and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aflac 11.98% 13.09% 2.05%
Aflac Competitors 4.00% 1.18% 1.80%

Volatility and Risk

Aflac has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Aflac’s rivals have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Summary

Aflac rivals beat Aflac on 10 of the 15 factors compared.

Aflac Company Profile

Aflac Incorporated is a business holding company. The Company is involved in supplemental health and life insurance, which is marketed and administered through its subsidiary, American Family Life Assurance Company of Columbus (Aflac). The Company’s insurance business consists of two segments: Aflac Japan and Aflac U.S. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. The Company designs the United States insurance products to provide supplemental coverage for people having medical or primary insurance coverage. Aflac U.S. offers accident coverage on both an individual and group basis. The Company offers cancer plans, critical illness plans, and critical care and recovery plans.

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