Voya Financial vs Aflac

Voya Financial and Aflac are both reputable companies in the financial services industry, offering a variety of products to help individuals plan for their future and protect themselves financially. While both companies have a strong track record of performance and growth, they have some key differences in their business models and target markets. Investors looking to add insurance or investment stocks to their portfolios may want to consider the unique offerings and growth potential of Voya Financial and Aflac before making a decision.

Voya Financial or Aflac?

When comparing Voya Financial 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 Voya Financial 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. Voya Financial has a dividend yield of 3.06%, while Aflac has a dividend yield of 1.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Voya Financial reports a 5-year dividend growth of 97.44% year and a payout ratio of 24.64%. On the other hand, Aflac reports a 5-year dividend growth of 5.26% year and a payout ratio of 18.74%.

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 Voya Financial P/E ratio at 9.77 and Aflac's P/E ratio at 11.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Voya Financial P/B ratio is 2.03 while Aflac's P/B ratio is 2.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Voya Financial has seen a 5-year revenue growth of 0.42%, while Aflac's is 0.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Voya Financial's ROE at 21.66% and Aflac's ROE at 23.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $81.01 for Voya Financial and $113.83 for Aflac. Over the past year, Voya Financial's prices ranged from $63.02 to $82.26, with a yearly change of 30.53%. 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.