Amacore Group (OTCMKTS:ACGI) versus Principal Financial Group (NASDAQ:PFG) Critical Analysis

Principal Financial Group (NASDAQ:PFG) and Amacore Group (OTCMKTS:ACGI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

Principal Financial Group has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Amacore Group has a beta of 3.35, suggesting that its stock price is 235% more volatile than the S&P 500.

Profitability

This table compares Principal Financial Group and Amacore Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Principal Financial Group	10.10%	16.25%	0.57%
Amacore Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Principal Financial Group and Amacore Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Principal Financial Group	1	7	2	0	2.10
Amacore Group	0	0	0	0	0.00

Principal Financial Group currently has a consensus target price of $95.33, indicating a potential downside of 5.07%. Given Amacore Group’s higher possible upside, analysts clearly believe Amacore Group is more favorable than Principal Financial Group.

Valuation & Earnings

This table compares Principal Financial Group and Amacore Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Principal Financial Group	$15.63 billion	1.39	$1.19 billion	$6.99	14.37
Amacore Group	N/A	N/A	N/A	N/A	N/A

Principal Financial Group has higher revenue and earnings than Amacore Group.

Institutional & Insider Ownership

75.1% of Principal Financial Group shares are held by institutional investors. 1.1% of Principal Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Principal Financial Group beats Amacore Group on 8 of the 10 factors compared between the two stocks.

About Principal Financial Group

Principal Financial Group, Inc. provides retirement, asset management, and insurance products and services to businesses, individuals, and institutional clients worldwide. The company operates through Retirement and Income Solutions, Principal Global Investors, Principal International, and U.S. Insurance Solutions segments. The Retirement and Income Solutions segment provides a portfolio of asset accumulation products and services for retirement savings and income. It offers products and services for defined contribution plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, employee stock ownership plans, equity compensation, and pension risk transfer services; individual retirement accounts; investment only products; and mutual funds, individual variable annuities, and bank products. The Principal Global Investors segment provides equity, fixed income, real estate, and other alternative investments, as well as asset allocation, stable value management, and other structured investment strategies. The Principal International segment offers pension accumulation products and services, mutual funds, asset management, income annuities, and life insurance accumulation products, as well as voluntary savings plans in Brazil, Chile, Mexico, China, Hong Kong Special Administrative Region, India, and Southeast Asia. The U.S. Insurance Solutions segment provides specialty benefits, such as group dental and vision insurance, group life insurance, and group and individual disability insurance, as well as administers group dental, disability, and vision benefits; and individual life insurance products comprising universal, variable universal, indexed universal, and term life insurance products in the United States. It also offers insurance solutions for small and medium-sized businesses and their owners, as well as executives. Principal Financial Group, Inc. was founded in 1879 and is based in Des Moines, Iowa.

About Amacore Group

The Amacore Group, Inc. provides and markets healthcare-related membership products for individuals and families. Its products include limited and major medical insurance programs, supplemental medical insurance, and discount dental and vision programs. The company also provides and markets lifestyle membership programs, including insurance discounts, discount benefit savings, ID theft, legal counsel, credit management, automotive warranties, employment protection, and a host of others. The company serves insurance carriers, financial institutions, affiliate marketers, direct marketers, insurance agents, and fortune 500 companies. It distributes its products and services through various distribution methods, such as its agent network, inbound call center, in-house sales representatives, network marketing, and affinity marketing partners, as well as through third-party direct response marketers. The Amacore Group, Inc. was formerly known as Eye Care International Inc. and changed its name to The Amacore Group, Inc. in April 2005. The company was founded in 1993 and is based in Maitland, Florida.