AFL vs UNM

For growth investors, Unum Group (UNM) is the stronger pick with 2.

1% revenue growth year-over-year, versus -8. 8% for Aflac Incorporated (AFL). Aflac Incorporated (AFL) offers the better valuation at 16. 6x trailing P/E (15. 8x forward), making it the more compelling value choice. Analysts rate Aflac Incorporated (AFL) a "Hold" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Aflac Incorporated (AFL) is the cheapest at 16.

6x versus Unum Group at 18. 8x. On forward P/E, Unum Group is actually cheaper at 9. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Unum Group wins at 4. 76x versus Aflac Incorporated's 33. 17x.

Over the past 5 years, Unum Group (UNM) delivered a total return of +193.

8%, compared to +118. 8% for Aflac Incorporated (AFL). Over 10 years, the gap is even starker: AFL returned +272. 5% versus UNM's +177. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Aflac Incorporated (AFL) is the lower-risk stock at 0.

19β versus Unum Group's 0. 48β — meaning UNM is approximately 158% more volatile than AFL relative to the S&P 500. On balance sheet safety, Aflac Incorporated (AFL) carries a lower debt/equity ratio of 29% versus 35% for Unum Group — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Unum Group (UNM) is pulling ahead at 2.

1% versus -8. 8% for Aflac Incorporated (AFL). On earnings-per-share growth, the picture is similar: Aflac Incorporated grew EPS -29. 1% year-over-year, compared to -54. 8% for Unum Group. Over a 3-year CAGR, UNM leads at 3. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Aflac Incorporated (AFL) is the more profitable company, earning 20.

9% net margin versus 5. 7% for Unum Group — meaning it keeps 20. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AFL leads at 26. 6% versus 7. 2% for UNM. At the gross margin level — before operating expenses — AFL leads at 38. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Unum Group (UNM) is the more undervalued stock at a PEG of 4. 76x versus Aflac Incorporated's 33. 17x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Unum Group (UNM) trades at 9. 2x forward P/E versus 15. 8x for Aflac Incorporated — 6. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UNM: 22. 0% to $98. 00.

All stocks in this comparison pay dividends.

Unum Group (UNM) offers the highest yield at 2. 2%, versus 2. 0% for Aflac Incorporated (AFL).

For long-horizon retirement investors, Aflac Incorporated (AFL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

19), 2. 0% yield, +272. 5% 10Y return). Both have compounded well over 10 years (AFL: +272. 5%, UNM: +177. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AFL is a mid-cap deep-value stock; UNM is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.