Contrasting Athene (ATH) and Principal Financial Group (PFG)

Athene (NYSE: ATH) and Principal Financial Group (NYSE:PFG) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Athene and Principal Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Athene 0 5 12 0 2.71
Principal Financial Group 1 6 2 0 2.11

Athene presently has a consensus target price of $59.31, suggesting a potential upside of 15.93%. Principal Financial Group has a consensus target price of $67.67, suggesting a potential downside of 5.40%. Given Athene’s stronger consensus rating and higher possible upside, research analysts plainly believe Athene is more favorable than Principal Financial Group.

Dividends

Principal Financial Group pays an annual dividend of $1.96 per share and has a dividend yield of 2.7%. Athene does not pay a dividend. Principal Financial Group pays out 32.1% of its earnings in the form of a dividend. Principal Financial Group has increased its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Athene 22.66% 13.31% 1.15%
Principal Financial Group 12.35% 13.55% 0.63%

Institutional and Insider Ownership

48.4% of Athene shares are owned by institutional investors. Comparatively, 68.8% of Principal Financial Group shares are owned by institutional investors. 10.6% of Athene shares are owned by insiders. Comparatively, 1.5% of Principal Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Athene and Principal Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Athene $4.11 billion 2.49 $805.00 million $6.79 7.53
Principal Financial Group $12.38 billion 1.67 $1.32 billion $6.10 11.73

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

Summary

Athene beats Principal Financial Group on 9 of the 16 factors compared between the two stocks.

Athene 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.

Principal Financial Group Company Profile

Principal Financial Group, Inc. is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance. Its segments include Retirement and Income Solutions; Principal Global Investors, Principal International; U.S. Insurance Solutions, and Corporate. The Company offers a portfolio of products and services for retirement savings and retirement income. The Company’s Principal Global Investors segment manages assets for investors around the world. The Company offers pension accumulation products and services, mutual funds, asset management, income annuities and life insurance accumulation products. The Company’s U.S. Insurance Solutions segment provides group and individual insurance solutions. It focuses on small and medium-sized businesses, providing a range of retirement and employee benefit solutions, and individual insurance solutions to meet the needs of the business owners and their employees.

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