VOYA vs PFG

For growth investors, Principal Financial Group, Inc.

(PFG) is the stronger pick with -3. 1% revenue growth year-over-year, versus -6. 9% for Voya Financial, Inc. (VOYA). Voya Financial, Inc. (VOYA) offers the better valuation at 12. 6x trailing P/E (8. 3x forward), making it the more compelling value choice. Analysts rate Voya Financial, Inc. (VOYA) a "Buy" — based on 26 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, Voya Financial, Inc.

(VOYA) is the cheapest at 12. 6x versus Principal Financial Group, Inc. at 19. 1x. On forward P/E, Voya Financial, Inc. is actually cheaper at 8. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Voya Financial, Inc. wins at 0. 49x versus Principal Financial Group, Inc. 's 13. 78x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Principal Financial Group, Inc.

(PFG) delivered a total return of +70. 7%, compared to +23. 2% for Voya Financial, Inc. (VOYA). Over 10 years, the gap is even starker: PFG returned +195. 8% versus VOYA's +189. 7%. 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), Principal Financial Group, Inc.

(PFG) is the lower-risk stock at 1. 00β versus Voya Financial, Inc. 's 1. 17β — meaning VOYA is approximately 17% more volatile than PFG relative to the S&P 500. On balance sheet safety, Voya Financial, Inc. (VOYA) carries a lower debt/equity ratio of 30% versus 34% for Principal Financial Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Principal Financial Group, Inc.

(PFG) is pulling ahead at -3. 1% versus -6. 9% for Voya Financial, Inc. (VOYA). On earnings-per-share growth, the picture is similar: Voya Financial, Inc. grew EPS 2. 4% year-over-year, compared to -21. 4% for Principal Financial Group, Inc.. 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.

Voya Financial, Inc.

(VOYA) is the more profitable company, earning 8. 7% net margin versus 7. 6% for Principal Financial Group, Inc. — meaning it keeps 8. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PFG leads at 9. 1% versus 3. 5% for VOYA. At the gross margin level — before operating expenses — VOYA leads at 51. 8%, 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, Voya Financial, Inc. (VOYA) is the more undervalued stock at a PEG of 0. 49x versus Principal Financial Group, Inc. 's 13. 78x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Voya Financial, Inc. (VOYA) trades at 8. 3x forward P/E versus 10. 7x for Principal Financial Group, Inc. — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VOYA: 13. 4% to $90. 33.

All stocks in this comparison pay dividends.

Principal Financial Group, Inc. (PFG) offers the highest yield at 3. 0%, versus 2. 3% for Voya Financial, Inc. (VOYA).

For long-horizon retirement investors, Principal Financial Group, Inc.

(PFG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 00), 3. 0% yield, +195. 8% 10Y return). Both have compounded well over 10 years (PFG: +195. 8%, VOYA: +189. 7%), 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: VOYA is a small-cap deep-value stock; PFG is a mid-cap income-oriented 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.