Aflac (NYSE: AFL) and Aegon NV (NYSE:AEG) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Aflac and Aegon NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aflac 11.98% 13.09% 2.05%
Aegon NV 5.18% 6.73% 0.40%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aflac and Aegon NV, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aflac 3 6 2 0 1.91
Aegon NV 0 3 2 0 2.40

Aflac currently has a consensus price target of $75.56, suggesting a potential downside of 8.13%. Aegon NV has a consensus price target of $5.00, suggesting a potential downside of 14.82%. Given Aflac’s higher probable upside, analysts plainly believe Aflac is more favorable than Aegon NV.

Institutional and Insider Ownership

65.7% of Aflac shares are held by institutional investors. Comparatively, 10.6% of Aegon NV shares are held by institutional investors. 3.0% of Aflac shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Aflac has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Aegon NV has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Valuation & Earnings

This table compares Aflac and Aegon NV’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aflac $22.65 billion 1.44 $4.75 billion $6.63 12.40
Aegon NV $62.30 billion 0.19 $3.13 billion $0.91 6.45

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

Dividends

Aflac pays an annual dividend of $1.72 per share and has a dividend yield of 2.1%. Aegon NV pays an annual dividend of $0.25 per share and has a dividend yield of 4.3%. Aflac pays out 25.9% of its earnings in the form of a dividend. Aegon NV pays out 27.5% 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. Aegon NV has increased its dividend for 34 consecutive years. Aegon NV is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Aflac beats Aegon NV on 11 of the 16 factors compared between the two stocks.

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.

Aegon NV Company Profile

Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.

Receive News & Stock Ratings for Aflac Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aflac Incorporated and related stocks with our FREE daily email newsletter.