Aflac vs Voya Financial Which Outperforms?

When considering investing in the financial sector, two prominent companies that often come to mind are Aflac and Voya Financial. Aflac is a well-known insurance provider with a focus on supplemental health and life insurance products, while Voya Financial is a diversified financial services company offering retirement, investment, and insurance solutions. Both companies have shown resilience and growth in the face of economic challenges, making them attractive options for investors seeking stability and potential returns in the stock market. Let's delve deeper into their respective strengths and weaknesses to determine which may be the better investment choice.

Aflac or Voya Financial?

When comparing Aflac and Voya Financial, 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 Voya Financial.

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 1.92%, while Voya Financial has a dividend yield of 3.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aflac reports a 5-year dividend growth of 13.12% year and a payout ratio of 19.97%. On the other hand, Voya Financial reports a 5-year dividend growth of 45.68% year and a payout ratio of 31.33%.

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 11.09 and Voya Financial's P/E ratio at 12.21. 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 2.31 while Voya Financial's P/B ratio is 2.03.

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 -0.96%, while Voya Financial's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aflac's ROE at 21.66% and Voya Financial's ROE at 15.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $107.05 for Aflac and $68.73 for Voya Financial. Over the past year, Aflac's prices ranged from $79.31 to $115.50, with a yearly change of 45.63%. Voya Financial's prices fluctuated between $64.10 and $84.30, with a yearly change of 31.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.