Equitable (NYSE:EQH) vs. Aegon (NYSE:AEG) Head-To-Head Analysis

Equitable (NYSE:EQH) and Aegon (NYSE:AEG) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Risk & Volatility

Equitable has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Aegon has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Dividends

Equitable pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. Aegon pays an annual dividend of $0.38 per share and has a dividend yield of 4.5%. Equitable pays out -38.0% of its earnings in the form of a dividend. Aegon pays out -237.5% 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. Equitable has increased its dividend for 2 consecutive years. Aegon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Equitable and Aegon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable	-7.26%	232.29%	0.58%
Aegon	N/A	N/A	N/A

Earnings and Valuation

This table compares Equitable and Aegon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$11.67 billion	0.99	-$1.38 billion	($2.84)	-14.50
Aegon	$10.29 billion	1.64	$1.11 billion	($0.16)	-52.66

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Equitable and Aegon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	2	0	9	2	2.85
Aegon	0	3	4	1	2.75

Equitable currently has a consensus price target of $58.18, suggesting a potential upside of 41.27%. Aegon has a consensus price target of $10.00, suggesting a potential upside of 18.69%. Given Equitable’s stronger consensus rating and higher possible upside, analysts plainly believe Equitable is more favorable than Aegon.

Institutional & Insider Ownership

92.7% of Equitable shares are owned by institutional investors. Comparatively, 4.3% of Aegon shares are owned by institutional investors. 1.1% of Equitable shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Equitable beats Aegon on 12 of the 18 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. 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 services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

About Aegon

Aegon Ltd. provides insurance, pensions, retirement, and asset management services in the United States, the Netherlands, the United Kingdom, and internationally. The company offers life, accident, property and casualty, and health insurance; annuities, retirement plans, mutual funds, and stable value solutions; residential mortgage and digital baking services; and retail and institutional investment management solutions and retirement savings vehicles and strategies. It offers its products under the Aegon and Transamerica brands. Aegon Ltd. was founded in 1844 and is headquartered in The Hague, the Netherlands.