Corebridge Financial (NYSE:CRBG) versus Palomar (NASDAQ:PLMR) Head-To-Head Survey

Palomar (NASDAQ:PLMR) and Corebridge Financial (NYSE:CRBG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Palomar and Corebridge Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palomar	0	0	5	1	3.17
Corebridge Financial	0	4	10	0	2.71

Palomar presently has a consensus price target of $160.00, suggesting a potential upside of 14.81%. Corebridge Financial has a consensus price target of $39.00, suggesting a potential upside of 12.40%. Given Palomar’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Palomar is more favorable than Corebridge Financial.

Insider and Institutional Ownership

90.2% of Palomar shares are owned by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are owned by institutional investors. 3.7% of Palomar 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 company is poised for long-term growth.

Dividends

Palomar pays an annual dividend of $1.80 per share and has a dividend yield of 1.3%. Corebridge Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. Palomar pays out 24.2% 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. Corebridge Financial has increased its dividend for 1 consecutive years. Corebridge Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Palomar and Corebridge Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palomar	$875.97 million	4.19	$197.07 million	$7.44	18.73
Corebridge Financial	$20.46 billion	0.76	-$366.00 million	$1.71	20.29

Palomar has higher earnings, but lower revenue than Corebridge Financial. Palomar 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 Palomar and Corebridge Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palomar	18.61%	23.28%	6.45%
Corebridge Financial	4.37%	17.37%	0.52%

Volatility and Risk

Palomar has a beta of 0.35, meaning that its stock price is 65% 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.

Summary

Palomar beats Corebridge Financial on 11 of the 18 factors compared between the two stocks.

About Palomar

Palomar Holdings, Inc., a specialty insurance company, provides property and casualty insurance to residential and businesses in the United States. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, fronting, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings and changed its name to Palomar Holdings, Inc. The company was incorporated in 2013 and is headquartered in La Jolla, California.

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.