AXA Equitable (EQH) versus Its Peers Financial Analysis

AXA Equitable (NYSE: EQH) is one of 19 public companies in the “Insurance agents, brokers, & service” industry, but how does it weigh in compared to its peers? We will compare AXA Equitable to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares AXA Equitable and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AXA Equitable N/A N/A N/A
AXA Equitable Competitors 7.28% 18.52% 9.08%

Insider & Institutional Ownership

48.2% of AXA Equitable shares are held by institutional investors. Comparatively, 64.8% of shares of all “Insurance agents, brokers, & service” companies are held by institutional investors. 0.2% of AXA Equitable shares are held by company insiders. Comparatively, 26.0% of shares of all “Insurance agents, brokers, & service” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AXA Equitable and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AXA Equitable 0 5 8 0 2.62
AXA Equitable Competitors 194 699 791 43 2.40

AXA Equitable presently has a consensus price target of $24.42, indicating a potential upside of 12.11%. As a group, “Insurance agents, brokers, & service” companies have a potential upside of 11.38%. Given AXA Equitable’s stronger consensus rating and higher possible upside, equities analysts clearly believe AXA Equitable is more favorable than its peers.

Valuation and Earnings

This table compares AXA Equitable and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AXA Equitable $12.08 billion N/A 5.60
AXA Equitable Competitors $13.74 billion $1.05 billion 35.89

AXA Equitable’s peers have higher revenue and earnings than AXA Equitable. AXA Equitable is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

AXA Equitable pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. AXA Equitable pays out 13.4% of its earnings in the form of a dividend. As a group, “Insurance agents, brokers, & service” companies pay a dividend yield of 1.7% and pay out 34.2% of their earnings in the form of a dividend. AXA Equitable is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

AXA Equitable peers beat AXA Equitable on 8 of the 13 factors compared.

AXA Equitable Company Profile

AXA Equitable Holdings, Inc. operates as a diversified financial services company worldwide. It operates through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related solutions to a range of clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions. The Protection Solutions segment provides a range of universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses. The company was founded in 1859 and is based in New York, New York. AXA Equitable Holdings, Inc. is a subsidiary of AXA S.A.

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