Prudential Financial (NYSE:PRU) versus Arch Capital Group (NASDAQ:ACGLN) Head-To-Head Contrast

Arch Capital Group (NASDAQ:ACGLN) and Prudential Financial (NYSE:PRU) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Dividends

Arch Capital Group pays an annual dividend of $1.14 per share and has a dividend yield of 7.2%. Prudential Financial pays an annual dividend of $5.60 per share and has a dividend yield of 4.6%. Prudential Financial pays out 50.7% of its earnings in the form of a dividend. Prudential Financial has raised its dividend for 18 consecutive years.

Insider & Institutional Ownership

56.8% of Prudential Financial shares are held by institutional investors. 0.1% of Prudential Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Arch Capital Group and Prudential Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arch Capital Group	$18.59 billion	N/A	N/A	N/A	N/A
Prudential Financial	$64.86 billion	0.65	$3.58 billion	$11.04	11.06

Prudential Financial has higher revenue and earnings than Arch Capital Group.

Profitability

This table compares Arch Capital Group and Prudential Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Capital Group	N/A	N/A	N/A
Prudential Financial	6.51%	16.68%	0.70%

Analyst Recommendations

This is a summary of current ratings and price targets for Arch Capital Group and Prudential Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Capital Group	0	0	0	0	0.00
Prudential Financial	5	11	1	0	1.76

Prudential Financial has a consensus price target of $109.31, indicating a potential downside of 10.45%. Given Prudential Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Prudential Financial is more favorable than Arch Capital Group.

Summary

Prudential Financial beats Arch Capital Group on 10 of the 12 factors compared between the two stocks.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was founded in 1995 and is based in Pembroke, Bermuda.

About Prudential Financial

Prudential Financial, Inc., together with its subsidiaries, provides insurance, investment management, and other financial products and services in the United States and internationally. It operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments. The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit and other alternatives, and multi-asset class strategies to institutional and retail clients, as well as its general account. The Retirement Strategies segment provides a range of retirement investment, and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors; develops and distributes individual variable and fixed annuity products. The Group Insurance segment offers various group life, and long-term and short-term group disability, as well as group corporate-, bank-, and trust-owned life insurance in the United States primarily for institutional clients for use in connection with employee and membership benefits plans; sells accidental death and dismemberment, and other supplemental health solutions; and plan administration services in connection with its insurance coverages. The Individual Life segment develops and distributes variable life, universal life, and term life insurance products. The International Businesses segment develops and distributes life insurance, retirement products, investment products, and certain accident and health products; and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks. Prudential Financial, Inc. was founded in 1875 and is headquartered in Newark, New Jersey.