Prudential vs Legal & General, side by side
Both began as long-standing British insurers, but they have taken very different directions. Prudential now concentrates on life insurance and savings in Asia and Africa, betting on growing middle classes there rather than on the UK market. Legal & General stays UK-centred, combining life insurance, pension-risk transfer - taking on company pension schemes - and a large asset-management arm, and is known among investors for a high dividend yield.
On our factor screen it looks strongest on growth and quality, and weakest on momentum.
On our factor screen it looks strongest on growth and momentum, and weakest on quality.
The numbers, side by side
| Measure |  Prudential |  Legal & General |
|---|---|---|
| Price | £11.16 | £3.00 |
| Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'. | £27.76B | £16.41B |
| P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 9.7 | 37.5 |
| Div yield: Dividend yield: the yearly dividend as a percentage of the share price - roughly the income you'd earn just from dividends. | 1.8% | 7.3% |
| Revenue growth | 18.8% | 13.9% |
| 1Y: How much the share price has moved over the past year. | +19% | +18% |
More measures
| Forward P/E: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth. | 11.3 | 11.7 |
|---|---|---|
| Net margin | 27.6% | 5.4% |
| ROE | 20.6% | 17.9% |
| Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. | 0.90 | 0.79 |
The bolder figure is simply the larger of the two - higher is not automatically good (a higher P/E means more expectation in the price; a higher beta means bigger swings).
How they differ
Prudential is roughly 1.7x the size of Legal & General by market value. On our factor screen Prudential currently screens higher on quality and income, while Legal & General screens higher on momentum. Legal & General trades on the higher P/E (37.5 vs 9.7), so more expectation is already built into its price; and Legal & General currently yields more (7.3% vs 1.8%).
Descriptive only - how the two compare on today's data, never a verdict on either.
Prudential, in one line
A life and health insurer built for Asia and Africa - and no relation to the US firm with almost the same name.
Read the full Prudential explainer →Legal & General, in one line
Legal & General is a long-standing British financial giant that helps people manage their pensions, life insurance, and property investments.
Read the full Legal & General explainer →What to weigh
If dividend income matters to you, the yields differ (1.8% Prudential vs 7.3% Legal & General). These are facts to understand, not a verdict - read each full explainer before deciding anything.
Common questions
Do Prudential and Legal & General do the same thing?
Both are insurers with roots in Britain, but their focus differs sharply. Prudential has shifted almost entirely to life insurance and savings in Asia and Africa. Legal & General remains UK-based, spanning life cover, pension-risk transfer for company schemes and a big fund-management business, and is widely followed for its dividend.
Why do their share prices respond to different news?
Because their earnings come from different places. Prudential's results depend heavily on Asian and African economies and currencies, so news from those regions matters most. Legal & General is tied to the UK, to interest rates that affect its pensions work, and to markets that move its asset-management arm. Different forces move each.