Financial Analysis: Corebridge Financial (NYSE:CRBG) versus Aflac (NYSE:AFL)

Aflac (NYSE:AFL) and Corebridge Financial (NYSE:CRBG) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares Aflac and Corebridge Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aflac	$18.29 billion	3.11	$3.65 billion	$9.33	12.17
Corebridge Financial	$20.46 billion	0.77	-$366.00 million	$1.71	20.61

Aflac has higher earnings, but lower revenue than Corebridge Financial. Aflac is trading at a lower price-to-earnings ratio than Corebridge Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aflac and Corebridge Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aflac	26.91%	13.27%	3.34%
Corebridge Financial	4.37%	17.37%	0.52%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Aflac and Corebridge Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aflac	3	7	2	2	2.21
Corebridge Financial	0	6	9	0	2.60

Aflac currently has a consensus target price of $116.69, indicating a potential upside of 2.78%. Corebridge Financial has a consensus target price of $37.75, indicating a potential upside of 7.12%. Given Corebridge Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Corebridge Financial is more favorable than Aflac.

Insider & Institutional Ownership

67.4% of Aflac shares are owned by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are owned by institutional investors. 0.8% of Aflac shares are owned by insiders. Comparatively, 0.3% of Corebridge Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Aflac pays an annual dividend of $2.44 per share and has a dividend yield of 2.1%. Corebridge Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Aflac pays out 26.2% of its earnings in the form of a dividend. Corebridge Financial pays out 58.5% 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. Aflac has raised its dividend for 44 consecutive years and Corebridge Financial has raised its dividend for 1 consecutive years.

Risk and Volatility

Aflac has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Corebridge Financial has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

About Aflac

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. The company operates through Aflac Japan and Aflac U.S. segments. The Aflac Japan segment offers cancer, medical, nursing care, work leave, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan. The Aflac U.S. segment provides cancer, accident, short-term disability, critical illness, hospital indemnity, dental, vision, long-term care and disability, and term and whole life insurance products in the United States. It sells its products through sales associates, brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.

About Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.