Comparing Corebridge Financial (NYSE:CRBG) and Employers (NYSE:EIG)

Employers (NYSE:EIG) and Corebridge Financial (NYSE:CRBG) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Employers and Corebridge Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Employers	0	2	1	0	2.33
Corebridge Financial	0	6	9	0	2.60

Employers presently has a consensus price target of $59.00, indicating a potential upside of 24.43%. Corebridge Financial has a consensus price target of $37.42, indicating a potential upside of 7.33%. Given Employers’ higher possible upside, equities research analysts clearly believe Employers is more favorable than Corebridge Financial.

Insider & Institutional Ownership

80.5% of Employers shares are owned by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are owned by institutional investors. 1.3% of Employers shares are owned by insiders. Comparatively, 0.3% of Corebridge Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Employers and Corebridge Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Employers	0.91%	1.30%	0.35%
Corebridge Financial	4.37%	17.37%	0.52%

Volatility and Risk

Employers has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Corebridge Financial has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Dividends

Employers pays an annual dividend of $1.36 per share and has a dividend yield of 2.9%. Corebridge Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. Employers pays out 197.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Corebridge Financial pays out 58.5% of its earnings in the form of a dividend. Employers has raised its dividend for 4 consecutive years and Corebridge Financial has raised its dividend for 1 consecutive years. Corebridge Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Employers and Corebridge Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Employers	$858.70 million	0.99	$10.80 million	$0.69	68.72
Corebridge Financial	$20.46 billion	0.76	-$366.00 million	$1.71	20.39

Employers has higher earnings, but lower revenue than Corebridge Financial. Corebridge Financial is trading at a lower price-to-earnings ratio than Employers, indicating that it is currently the more affordable of the two stocks.

Summary

Corebridge Financial beats Employers on 11 of the 17 factors compared between the two stocks.

About Employers

Employers Holdings, Inc., through its subsidiaries, operates in the commercial property and casualty insurance industry primarily in the United States. The company operates in two segments, Employers and Cerity. It offers workers’ compensation insurance to small businesses in low to medium hazard industries under the Employers and Cerity brands. The company markets its products through local, regional, and national agents and brokers; alternative distribution channels; and national, regional, and local trade groups and associations, as well as directly to customers. Employers Holdings, Inc. was founded in 2000 and is based in Henderson, Nevada.

About Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.