Jackson Financial vs Discover Financial Services Which Is a Better Investment?

Jackson Financial and Discover Financial Services are two well-known players in the financial services industry. Jackson Financial offers a wide range of insurance and investment products, while Discover Financial Services is known for its credit card offerings and banking services. Both companies have a strong track record of profitability and growth, making them attractive options for investors looking to add financial stocks to their portfolio. In this comparison, we will delve into the key factors that differentiate these two companies and analyze their potential for future success.

Jackson Financial or Discover Financial Services?

When comparing Jackson Financial and Discover Financial Services, 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 Jackson Financial and Discover Financial Services.

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. Jackson Financial has a dividend yield of 3.12%, while Discover Financial Services has a dividend yield of 1.59%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Jackson Financial reports a 5-year dividend growth of 0.00% year and a payout ratio of -26.11%. On the other hand, Discover Financial Services reports a 5-year dividend growth of 12.47% year and a payout ratio of 24.19%.

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 Jackson Financial P/E ratio at -7.11 and Discover Financial Services's P/E ratio at 13.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Jackson Financial P/B ratio is 0.64 while Discover Financial Services's P/B ratio is 2.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Jackson Financial has seen a 5-year revenue growth of -0.75%, while Discover Financial Services's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Jackson Financial's ROE at -9.43% and Discover Financial Services's ROE at 20.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $89.87 for Jackson Financial and $174.90 for Discover Financial Services. Over the past year, Jackson Financial's prices ranged from $47.49 to $115.22, with a yearly change of 142.62%. Discover Financial Services's prices fluctuated between $96.46 and $188.26, with a yearly change of 95.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.