PFG vs. WTW: Principal Financial vs. Willis Towers Watson Stock Comparison

Company Profile

Principal Financial (PFG) and Willis Towers Watson (WTW) both belong to the Insurance industry, though PFG is classified under Life & Health Insurance while WTW falls under Insurance Brokers.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Principal Financial (PFG) at 16.11% and Willis Towers Watson (WTW) at 20.18% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

Both Principal Financial (PFG) at 11.89% and Willis Towers Watson (WTW) at 15.22% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

Neither side reports a meaningful operating margin: for Principal Financial (PFG) in Insurance and Willis Towers Watson (WTW) in Insurance, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Growth

Both Principal Financial (PFG) at -3.11% and Willis Towers Watson (WTW) at -2.24% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

Only one side can be read here: Principal Financial (PFG) reports EPS growth of -21.41%, ranked against its industry; Willis Towers Watson (WTW) has no EPS growth figure this period.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Principal Financial (PFG) in Insurance and Willis Towers Watson (WTW) in Insurance both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Principal Financial (PFG) in Insurance and Willis Towers Watson (WTW) in Insurance run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Principal Financial (PFG) at 2.88% delivers top-quartile income for its industry, while Willis Towers Watson (WTW) at 0.29% pays a more typical yield — both are credible income propositions, PFG the richer one.

Willis Towers Watson (WTW) at 23.34% pays out a band-typical share of earnings, while Principal Financial (PFG) at 36.19% distributes more than its industry norm — less retained, thinner cover.

Dividend Metrics

Valuation

Principal Financial (PFG) at 12.35 is near its industry’s usual P/E ratio, while Willis Towers Watson (WTW) at 20.20 sits in the richer quartile — WTW needs stronger growth or earnings quality to justify the premium.

Principal Financial (PFG) at 1.42 is priced about in line with its industry on P/S ratio, while Willis Towers Watson (WTW) at 2.95 sits in the pricier quartile — WTW costs more per dollar of sales.

Principal Financial (PFG) at 2.00 is valued about in line with its industry on P/B ratio, while Willis Towers Watson (WTW) at 3.91 carries an above-peer premium to book — WTW is pricier on assets.

Valuation Metrics