Aflac vs Old Mutual Which Offers More Value?

Aflac Inc. and Old Mutual Limited are two prominent insurance companies in the financial market. Aflac, a leading provider of supplemental insurance, has a strong track record of consistent growth and a focus on innovation. Old Mutual, a diversified financial services group, boasts a global presence and a diverse range of products and services. Investors may consider factors such as performance, financial stability, and growth potential when comparing the stocks of these two companies.

Aflac or Old Mutual?

When comparing Aflac and Old Mutual, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aflac and Old Mutual.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aflac has a dividend yield of 1.74%, while Old Mutual has a dividend yield of 3.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aflac reports a 5-year dividend growth of 5.26% year and a payout ratio of 27.72%. On the other hand, Old Mutual reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.37%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aflac P/E ratio at 16.17 and Old Mutual's P/E ratio at 8.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aflac P/B ratio is 2.48 while Old Mutual's P/B ratio is 0.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aflac has seen a 5-year revenue growth of 0.11%, while Old Mutual's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aflac's ROE at 15.81% and Old Mutual's ROE at 0.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $108.22 for Aflac and $0.72 for Old Mutual. Over the past year, Aflac's prices ranged from $75.08 to $115.50, with a yearly change of 53.84%. Old Mutual's prices fluctuated between $0.53 and $0.82, with a yearly change of 54.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.