Reviewing Tiptree Financial (NASDAQ:TIPT) and Aflac (NYSE:AFL)

Aflac (NYSE:AFL) and Tiptree Financial (NASDAQ:TIPT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aflac	21.24%	12.82%	3.30%
Tiptree Financial	N/A	-2.21%	-0.46%

Valuation and Earnings

This table compares Aflac and Tiptree Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aflac	$17.16 billion	3.64	$3.65 billion	$6.86	18.43
Tiptree Financial	$490,000.00	1,302.20	$34.93 million	$10.82	1.62

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

Volatility & Risk

Aflac has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Tiptree Financial has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Dividends

Aflac pays an annual dividend of $2.44 per share and has a dividend yield of 1.9%. Tiptree Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Aflac pays out 35.6% of its earnings in the form of a dividend. Tiptree Financial pays out 2.2% 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 increased its dividend for 44 consecutive years and Tiptree Financial has increased its dividend for 2 consecutive years. Aflac is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Aflac and Tiptree Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aflac	4	8	3	1	2.06
Tiptree Financial	0	1	0	0	2.00

Aflac currently has a consensus price target of $118.73, indicating a potential downside of 6.07%. Given Aflac’s stronger consensus rating and higher possible upside, equities analysts clearly believe Aflac is more favorable than Tiptree Financial.

Insider and Institutional Ownership

67.4% of Aflac shares are held by institutional investors. Comparatively, 37.8% of Tiptree Financial shares are held by institutional investors. 0.8% of Aflac shares are held by insiders. Comparatively, 31.9% of Tiptree Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Aflac beats Tiptree Financial on 12 of the 17 factors compared between the two stocks.

About Aflac

Aflac Incorporated is an insurance company that provides supplemental health and life insurance to individuals and businesses. Its products are designed to help customers manage expenses that may not be covered by major medical insurance, including costs associated with accidents, cancer, critical illness and hospital stays. The company operates primarily in the United States and Japan. In the U.S., Aflac offers workplace benefits such as accident, disability, dental, vision and life insurance. In Japan, it provides products including cancer, medical and life insurance.

About Tiptree Financial

Tiptree Inc., formerly known as Tiptree Financial Inc., is a holding company focused primarily on insurance and related financial services. Its principal insurance platform, Fortegra, provides specialty property and casualty, accident and health, and warranty products and services. Fortegra works with insurers, agents, brokers, and other distribution partners, serving customers in the United States and international markets. Its offerings include coverage designed for specific customer groups and industries, as well as insurance programs and related services.