Primerica, Inc. (PRI) vs Prudential Financial, Inc. (PRU)

Primerica, Inc. and Prudential Financial, Inc. are both Insurance Life companies. Prudential Financial, Inc. is the larger, with a market value of $41.0B against $8.5B — 4.8× the size. Prudential Financial, Inc. trades at the lower P/E: 10.8× against 11.1×. Prudential Financial, Inc. grew revenue faster over the last twelve months: 9.38% against 8.57%. Primerica, Inc. has the higher net margin (23.2% vs 6.05%) and the higher return on invested capital (17.9% vs 8.20%). Both pay a dividend; Prudential Financial, Inc. yields more (4.76% vs 1.10%). Across the 23 metrics below, Primerica, Inc. leads on 12 and Prudential Financial, Inc. on 11.

Valuation

Metric PRI PRU Insurance Life median
P/E 11.05 10.75 12.15
P/S 2.51 0.64 0.75
P/B 3.41 1.30 1.12
Price to free cash flow 10.21 3.77 7.78
EV/EBITDA 7.87 9.87 8.42
EV/Sales 3.20 0.72 0.80
Earnings yield 9.05% 9.30% 8.23%
Free cash flow yield 9.80% 26.51% 11.12%

Profitability

Metric PRI PRU Insurance Life median
Gross margin 81.38% 32.44% 32.44%
Operating margin 30.60% 7.58% 11.31%
Net margin 23.20% 6.05% 6.61%
Free cash flow margin 24.54% 16.94% 15.04%
Return on equity 32.97% 12.47% 8.67%
Return on assets 5.38% 0.51% 0.67%
Return on invested capital 17.86% 8.20% 8.20%

Growth

Metric PRI PRU Insurance Life median
Revenue growth (TTM) 8.57% 9.38% 7.91%
EPS growth (last fiscal year) 67.10% 33.20% —
Revenue growth, 5-year CAGR 8.22% 1.28% 1.08%
Net income growth, 5-year CAGR 14.33% 0.00% 0.00%

Health

Metric PRI PRU Insurance Life median
Debt to equity 0.66 0.65 0.48
Current ratio 0.33 0.12 0.21
Net debt to EBITDA 0.76 0.12 0.12

Dividend

Metric PRI PRU Insurance Life median
Dividend yield 1.10% 4.76% 2.41%
Payout ratio 0.22 0.90 0.17

Size

Metric PRI PRU Insurance Life median
Market cap 8.45b 40.97b 7.92b

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