Prudential Financial (PRU) versus Athene Holding (ATH) Financial Analysis

Prudential Financial (NYSE: PRU) and Athene Holding (NYSE:ATH) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Insider & Institutional Ownership

63.6% of Prudential Financial shares are held by institutional investors. Comparatively, 40.1% of Athene Holding shares are held by institutional investors. 0.7% of Prudential Financial shares are held by insiders. Comparatively, 10.6% of Athene Holding shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Prudential Financial and Athene Holding, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Financial 0 7 6 0 2.46
Athene Holding 0 4 11 0 2.73

Prudential Financial currently has a consensus target price of $111.18, indicating a potential upside of 9.06%. Athene Holding has a consensus target price of $58.08, indicating a potential upside of 12.43%. Given Athene Holding’s stronger consensus rating and higher probable upside, analysts plainly believe Athene Holding is more favorable than Prudential Financial.

Valuation & Earnings

This table compares Prudential Financial and Athene Holding’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prudential Financial $59.25 billion 0.73 $7.12 billion $8.92 11.43
Athene Holding $5.72 billion 1.81 N/A N/A N/A

Prudential Financial has higher revenue and earnings than Athene Holding.

Profitability

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

Net Margins Return on Equity Return on Assets
Prudential Financial 7.15% 8.98% 0.56%
Athene Holding N/A N/A N/A

Dividends

Prudential Financial pays an annual dividend of $3.00 per share and has a dividend yield of 2.9%. Athene Holding does not pay a dividend. Prudential Financial pays out 33.6% of its earnings in the form of a dividend. Athene Holding has increased its dividend for 8 consecutive years.

Summary

Athene Holding beats Prudential Financial on 7 of the 13 factors compared between the two stocks.

Prudential Financial Company Profile

Prudential Financial, Inc., is a financial services company. The Company, through its subsidiaries, offers a range of financial products and services, which includes life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s operations consists of four divisions, which together encompass seven segments. The U.S. Retirement Solutions and Investment Management division consists of Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of Individual Life and Group Insurance segments. The International Insurance division consists of International Insurance segment. The Closed Block division consists of Closed Block segment. The Company has operations in the United States, Asia, Europe and Latin America.

Athene Holding Company Profile

Athene Holding Ltd. is an insurance holding company. The Company’s segments include Retirement Services, Corporate and Other. Retirement Services segment consists of the United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to its policyholders. Retirement Services has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one year guarantee fixed deferred annuities, immediate annuities and institutional products from its reinsurance partners. It offers two product lines: annuities and funding agreements. It offers deferred and immediate annuities, which are focused on the needs and objectives of people preparing for, approaching or living in retirement. It focuses on issuing funding agreements to institutional investors. Its life and other products include other retail products.

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