AFL vs. AOS

Last updated Jun 4, 2026

AFL (Aflac Incorporated) and AOS (A. O. Smith Corporation) are both stocks. AFL operates in Insurance - Life (Financial Services), while AOS operates in Specialty Industrial Machinery (Industrials). Over the past 10 years, AFL returned 15.37%/yr vs 5.11%/yr for AOS. At a 0.28 correlation, their price movements are largely independent.

Performance

AFL vs. AOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Aflac Incorporated (AFL) and A. O. Smith Corporation (AOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AFL achieves a 4.93% return, which is significantly higher than AOS's -14.27% return. Over the past 10 years, AFL has outperformed AOS with an annualized return of 15.37%, while AOS has yielded a comparatively lower 5.11% annualized return.

AFL

• 1D: 0.77%
• 1M: 1.56%
• YTD: 4.93%
• 6M: 6.11%
• 1Y: 12.37%
• 3Y*: 22.39%
• 5Y*: 17.42%
• 10Y*: 15.37%

AOS

• 1D: -0.05%
• 1M: -3.62%
• YTD: -14.27%
• 6M: -14.83%
• 1Y: -9.49%
• 3Y*: -4.15%
• 5Y*: -1.99%
• 10Y*: 5.11%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AFL vs. AOS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AFL Aflac Incorporated	4.93%	8.94%	28.08%	17.36%	26.41%	34.55%	-13.60%	18.55%	6.20%	29.02%
AOS A. O. Smith Corporation	-14.27%	0.07%	-15.92%	47.30%	-32.07%	59.28%	17.46%	13.65%	-29.35%	30.78%

Correlation

The correlation between AFL and AOS is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Sep 10, 1984	0.28

The correlation between AFL and AOS shifts across timeframes, from 0.27 (1 year) to 0.44 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AFL : $58.94B AOS : $7.89B
EPS AFL : $8.76 AOS : $3.75
PE Ratio AFL : 13.07 AOS : 15.13
PEG Ratio AFL : 3.39 AOS : 0.62
PS Ratio AFL : 3.33 AOS : 2.09
PB Ratio AFL : 2.63 AOS : 3.66
Total Revenue (TTM) AFL : $18.22B AOS : $3.81B
Gross Profit (TTM) AFL : $8.70B AOS : $1.48B
EBITDA (TTM) AFL : $6.67B AOS : $794.70M

Return for Risk

AFL vs. AOS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AFL

AFL Risk / Return Rank: 62
AFL Sharpe Ratio Rank: 64
AFL Sortino Ratio Rank: 57
AFL Omega Ratio Rank: 54
AFL Calmar Ratio Rank: 66
AFL Martin Ratio Rank: 68

AOS

AOS Risk / Return Rank: 25
AOS Sharpe Ratio Rank: 24
AOS Sortino Ratio Rank: 21
AOS Omega Ratio Rank: 22
AOS Calmar Ratio Rank: 30
AOS Martin Ratio Rank: 26

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AFL vs. AOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Aflac Incorporated (AFL) and A. O. Smith Corporation (AOS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AFL	AOS	Difference
Sharpe ratio Return per unit of total volatility	0.74	-0.39	+1.13
Sortino ratio Return per unit of downside risk	1.16	-0.41	+1.57
Omega ratio Gain probability vs. loss probability	1.13	0.95	+0.18
Calmar ratio Return relative to maximum drawdown	1.36	-0.31	+1.68
Martin ratio Return relative to average drawdown	3.39	-0.77	+4.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AFL vs. AOS - Sharpe Ratio Comparison

The current AFL Sharpe Ratio is 0.74, which is higher than the AOS Sharpe Ratio of -0.39. The chart below compares the historical Sharpe Ratios of AFL and AOS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AFL	AOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.74	-0.39	+1.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	-0.07	+0.91
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.19	+0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.42	+0.06

Drawdowns

AFL vs. AOS - Drawdown Comparison

The maximum AFL drawdown since its inception was -82.71%, which is greater than AOS's maximum drawdown of -66.07%. Use the drawdown chart below to compare losses from any high point for AFL and AOS.

Drawdown Indicators

	AFL	AOS	Difference
Max Drawdown Largest peak-to-trough decline	-82.71%	-66.07%	-16.64%
Max Drawdown (1Y) Largest decline over 1 year	-9.11%	-30.29%	+21.18%
Max Drawdown (3Y) Largest decline over 3 years	-13.56%	-36.93%	+23.37%
Max Drawdown (5Y) Largest decline over 5 years	-19.86%	-42.68%	+22.82%
Max Drawdown (10Y) Largest decline over 10 years	-54.89%	-46.81%	-8.08%
Current Drawdown Current decline from peak	-3.01%	-35.86%	+32.85%
Average Drawdown Average peak-to-trough decline	-11.66%	-20.47%	+8.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.67%	12.30%	-8.63%

Volatility

AFL vs. AOS - Volatility Comparison

The current volatility for Aflac Incorporated (AFL) is 4.67%, while A. O. Smith Corporation (AOS) has a volatility of 7.88%. This indicates that AFL experiences smaller price fluctuations and is considered to be less risky than AOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AFL	AOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.67%	7.88%	-3.21%
Volatility (6M) Calculated over the trailing 6-month period	11.69%	18.90%	-7.21%
Volatility (1Y) Calculated over the trailing 1-year period	16.77%	24.73%	-7.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.88%	27.07%	-6.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.74%	27.06%	-1.32%

Dividends

AFL vs. AOS - Dividend Comparison

AFL's dividend yield for the trailing twelve months is around 2.08%, less than AOS's 2.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFL Aflac Incorporated	2.08%	2.10%	1.93%	2.04%	2.22%	2.26%	2.52%	2.04%	2.28%	1.98%	2.39%	2.64%
AOS A. O. Smith Corporation	2.50%	2.06%	1.91%	1.84%	1.99%	1.23%	1.79%	1.89%	1.78%	0.91%	1.01%	0.99%

Financials

AFL vs. AOS - Profitability Comparison

The chart below illustrates the profitability comparison between Aflac Incorporated and A. O. Smith Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AFL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Aflac Incorporated reported a gross profit of 2.48B and revenue of 4.32B. Therefore, the gross margin over that period was 57.5%.

AOS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a gross profit of 365.70M and revenue of 945.60M. Therefore, the gross margin over that period was 38.7%.

AFL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Aflac Incorporated reported an operating income of 1.23B and revenue of 4.32B, resulting in an operating margin of 28.4%.

AOS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported an operating income of 161.80M and revenue of 945.60M, resulting in an operating margin of 17.1%.

AFL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Aflac Incorporated reported a net income of 1.02B and revenue of 4.32B, resulting in a net margin of 23.6%.

AOS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, A. O. Smith Corporation reported a net income of 118.00M and revenue of 945.60M, resulting in a net margin of 12.5%.

Frequently Asked Questions

Can I hold both AFL and AOS in my portfolio?

AFL and AOS have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AFL or AOS?

AOS has higher volatility (7.88%) compared to AFL (4.67%). In terms of maximum drawdown, AFL dropped -82.71% vs AOS's -66.07%.

Which has better risk-adjusted returns?

AFL currently has the higher Sharpe Ratio (0.74 vs -0.39), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.