Analyzing Primerica (PRI) & AXA (AXAHY)

Primerica (NYSE: PRI) and AXA (OTCMKTS:AXAHY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current ratings and target prices for Primerica and AXA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Primerica 0 3 0 0 2.00
AXA 0 2 0 0 2.00

Primerica currently has a consensus price target of $103.00, indicating a potential upside of 7.97%. Given Primerica’s higher probable upside, analysts plainly believe Primerica is more favorable than AXA.

Dividends

Primerica pays an annual dividend of $1.00 per share and has a dividend yield of 1.0%. AXA pays an annual dividend of $1.26 per share and has a dividend yield of 4.7%. Primerica pays out 18.1% of its earnings in the form of a dividend. AXA pays out 43.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Primerica has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

91.3% of Primerica shares are owned by institutional investors. Comparatively, 0.2% of AXA shares are owned by institutional investors. 0.9% of Primerica shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Primerica and AXA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Primerica $1.69 billion 2.50 $350.25 million $5.52 17.28
AXA $111.32 billion 0.59 $7.01 billion $2.92 9.22

AXA has higher revenue and earnings than Primerica. AXA is trading at a lower price-to-earnings ratio than Primerica, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Primerica has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, AXA has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Primerica and AXA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Primerica 20.74% 19.47% 2.10%
AXA N/A N/A N/A

Summary

Primerica beats AXA on 11 of the 15 factors compared between the two stocks.

About Primerica

Primerica, Inc., together with its subsidiaries, distributes financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. It underwrites individual term life insurance products. The company also distributes and sells mutual funds and various retirement plans, managed investments, variable and fixed annuities, fixed indexed annuities, and segregated funds. In addition, it offers auto and homeowners' insurance, long-term care insurance, home automation solutions, and mortgage loan referrals; and insurance products, including supplemental medical and dental, accidental death, and disability for small businesses. Further, the company provides prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters. The company distributes and sells its products through licensed sales representatives. Primerica, Inc. was founded in 1927 and is based in Duluth, Georgia.

About AXA

AXA SA, through its subsidiaries, provides insurance and asset management services worldwide. It operates through six segments: France, Europe, Asia, the United States, International, and Transversal and Central Holdings. The company offers a range of insurance products, including life and savings, property and casualty, and health. Its products include motor, household, property and general liability insurance, banking, savings vehicles, and other investment-based products for personal/individual and commercial/group customers, as well as health, protection, and retirement products for individual or professional customers. The company also provides savings, protection, and health products, including whole life insurance, medical cover, and term life insurance; and other protection and health products, such as disability, cancer, and critical illness. In addition, it offers life and savings, and health products including term life, universal life, endowment, unit-linked, group term insurance, and hospital cash products and investment products, as well as individual and group retirement products, and employee benefits. Further, the company is involved in diversified investment management products, such as managed accounts, hedge funds, mutual funds, and other investment products to individual investors, private clients, and various institutional clients; management of retail mutual funds for individual investors; management of investments on behalf of institutional clients; and fundamental research, quantitative services, and brokerage-related services in equities and listed options for institutional investors. The company was founded in 1852 and is headquartered in Paris, France.

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