Contrasting Lincoln National (NYSE:LNC) and AIA Group (NYSE:AAGIY)
Lincoln National (NYSE:LNC) and AIA Group (OTCMKTS:AAGIY) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Lincoln National and AIA Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lincoln National||$17.26 billion||0.39||$886.00 million||$8.70||3.98|
|AIA Group||$47.24 billion||2.72||$6.65 billion||N/A||N/A|
Insider and Institutional Ownership
77.3% of Lincoln National shares are owned by institutional investors. Comparatively, 0.1% of AIA Group shares are owned by institutional investors. 1.4% of Lincoln National shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings for Lincoln National and AIA Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lincoln National presently has a consensus target price of $40.22, suggesting a potential upside of 16.05%. Given Lincoln National’s higher probable upside, research analysts plainly believe Lincoln National is more favorable than AIA Group.
Lincoln National pays an annual dividend of $1.60 per share and has a dividend yield of 4.6%. AIA Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Lincoln National pays out 18.4% of its earnings in the form of a dividend. Lincoln National has raised its dividend for 1 consecutive years. Lincoln National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Lincoln National and AIA Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Lincoln National has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, AIA Group has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
Lincoln National beats AIA Group on 10 of the 14 factors compared between the two stocks.
About Lincoln National
Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The Annuities segment offers variable, fixed, and indexed variable annuities. The Retirement Plan Services segment provides employers with retirement plan products and services primarily in the defined contribution retirement plan marketplace. This segment offers individual and group variable annuities, group fixed annuities, and mutual fund-based programs; and a range of plan services, including plan recordkeeping, compliance testing, participant education, and trust and custodial services. The Life Insurance segment provides life insurance products, including term insurance, such as single and survivorship versions of universal life insurance; variable universal life insurance; and indexed universal life insurance products; and a critical illness rider. The Group Protection segment offers group non-medical insurance products comprising short and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1905 and is headquartered in Radnor, Pennsylvania.
About AIA Group
AIA Group Limited, together with its subsidiaries, provides insurance products and services. The company offers life, medical, accident protection, critical illness protection, and disability income protection insurance products, as well as savings plans for individuals; and employee benefit, Asia benefits network, credit insurance, and retirement solutions for businesses. It also distributes investment and other financial services products. The company distributes its products and services through agents; distribution partners; other intermediated channels, including independent financial advisers, brokers, private banks, and specialist advisers; and direct channel. It operates in Hong Kong, Macau, Thailand, Singapore, Brunei, Malaysia, China, Korea, Australia, New Zealand, Cambodia, Indonesia, Myanmar, the Philippines, South Korea, Sri Lanka, Taiwan, Vietnam, and India. AIA Group Limited was founded in 1919 and is headquartered in Central, Hong Kong.
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