Old Mutual vs Aflac Which Should You Buy?

Old Mutual and Aflac are two prominent insurance companies that have established a strong presence in the financial market. Old Mutual, a South African-based company, offers a diverse range of financial products and services, while Aflac, a US-based company, specializes in providing supplemental health and life insurance policies. Both companies have experienced fluctuations in their stock prices over the years, making them popular choices for investors seeking potential growth opportunities. This comparison will analyze the performance and prospects of Old Mutual vs Aflac stocks in the current market conditions.

Old Mutual or Aflac?

When comparing Old Mutual and Aflac, 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 Old Mutual and Aflac.

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. Old Mutual has a dividend yield of 6.79%, while Aflac has a dividend yield of 1.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Old Mutual reports a 5-year dividend growth of 0.00% year and a payout ratio of 44.53%. On the other hand, Aflac reports a 5-year dividend growth of 5.26% year and a payout ratio of 27.72%.

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 Old Mutual P/E ratio at 6.58 and Aflac's P/E ratio at 15.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Old Mutual P/B ratio is 0.91 while Aflac's P/B ratio is 2.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Old Mutual has seen a 5-year revenue growth of 0.71%, while Aflac's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Old Mutual's ROE at 13.97% and Aflac's ROE at 15.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.66 for Old Mutual and $104.32 for Aflac. Over the past year, Old Mutual's prices ranged from $0.53 to $0.82, with a yearly change of 54.53%. Aflac's prices fluctuated between $75.08 and $115.50, with a yearly change of 53.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.