Great Eastern vs Prudential Which Performs Better?

Great Eastern and Prudential are two well-known insurance companies that have been competing in the market for years. Both companies have a strong presence in the industry and have been delivering solid financial performance. Investors looking to invest in insurance stocks may consider Great Eastern and Prudential as potential options. However, it is important to conduct a thorough analysis of both companies' financials, growth prospects, and market positioning before making any investment decisions.

Great Eastern or Prudential?

When comparing Great Eastern and Prudential, 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 Great Eastern and Prudential.

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. Great Eastern has a dividend yield of 1.74%, while Prudential has a dividend yield of 2.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Great Eastern reports a 5-year dividend growth of 8.45% year and a payout ratio of 38.40%. On the other hand, Prudential reports a 5-year dividend growth of -21.72% year and a payout ratio of 64.38%.

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 Great Eastern P/E ratio at 13.21 and Prudential's P/E ratio at 66.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Great Eastern P/B ratio is 1.45 while Prudential's P/B ratio is 3.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Great Eastern has seen a 5-year revenue growth of -0.53%, while Prudential's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Great Eastern's ROE at 11.34% and Prudential's ROE at 4.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$25.63 for Great Eastern and $16.75 for Prudential. Over the past year, Great Eastern's prices ranged from S$17.08 to S$26.50, with a yearly change of 55.15%. Prudential's prices fluctuated between $15.11 and $22.93, with a yearly change of 51.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.