AOS vs. AFL

Last updated Jun 23, 2026

AOS (A. O. Smith Corporation) and AFL (Aflac Incorporated) are both stocks. AOS operates in Specialty Industrial Machinery (Industrials), while AFL operates in Insurance - Life (Financial Services). Over the past 10 years, AOS returned 5.24%/yr vs 15.55%/yr for AFL. At a 0.28 correlation, their price movements are largely independent.

Performance

AOS vs. AFL - Performance Comparison

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

Returns By Period

In the year-to-date period, AOS achieves a -11.31% return, which is significantly lower than AFL's 6.81% return. Over the past 10 years, AOS has underperformed AFL with an annualized return of 5.24%, while AFL has yielded a comparatively higher 15.55% annualized return.

AOS

• 1D: 0.81%
• 1M: 2.46%
• YTD: -11.31%
• 6M: -12.91%
• 1Y: -4.49%
• 3Y*: -3.56%
• 5Y*: -1.06%
• 10Y*: 5.24%

AFL

• 1D: 0.94%
• 1M: -1.11%
• YTD: 6.81%
• 6M: 7.02%
• 1Y: 15.23%
• 3Y*: 22.79%
• 5Y*: 19.91%
• 10Y*: 15.55%

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

AOS vs. AFL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AOS A. O. Smith Corporation	-11.31%	0.07%	-15.92%	47.30%	-32.07%	59.28%	17.46%	13.65%	-29.35%	30.78%
AFL Aflac Incorporated	6.81%	8.94%	28.08%	17.36%	26.41%	34.55%	-13.60%	18.55%	6.20%	29.02%

Correlation

The correlation between AOS and AFL is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Sep 7, 1984	0.28

The correlation between AOS and AFL shifts across timeframes, from 0.26 (1 year) to 0.44 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AOS : $8.17B AFL : $60.00B
EPS AOS : $3.75 AFL : $8.76
PE Ratio AOS : 15.66 AFL : 13.31
PEG Ratio AOS : 0.64 AFL : 3.45
PS Ratio AOS : 2.17 AFL : 3.39
PB Ratio AOS : 3.79 AFL : 2.67
Total Revenue (TTM) AOS : $3.81B AFL : $18.22B
Gross Profit (TTM) AOS : $1.48B AFL : $8.70B
EBITDA (TTM) AOS : $794.70M AFL : $6.67B

Return for Risk

AOS vs. AFL — Risk / Return Rank

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

AOS

AOS Risk / Return Rank: 33
AOS Sharpe Ratio Rank: 35
AOS Sortino Ratio Rank: 29
AOS Omega Ratio Rank: 30
AOS Calmar Ratio Rank: 37
AOS Martin Ratio Rank: 36

AFL

AFL Risk / Return Rank: 68
AFL Sharpe Ratio Rank: 70
AFL Sortino Ratio Rank: 63
AFL Omega Ratio Rank: 60
AFL Calmar Ratio Rank: 72
AFL Martin Ratio Rank: 73

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.

AOS vs. AFL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for A. O. Smith Corporation (AOS) and Aflac Incorporated (AFL). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AOS	AFL	Difference
Sharpe ratio: Return per unit of total volatility	-0.18	0.90	-1.07
Sortino ratio: Return per unit of downside risk	-0.08	1.36	-1.44
Omega ratio: Gain probability vs. loss probability	0.99	1.16	-0.17
Calmar ratio: Return relative to maximum drawdown	-0.15	1.68	-1.83
Martin ratio: Return relative to average drawdown	-0.33	4.16	-4.49

AOS vs. AFL - Sharpe Ratio Comparison

The current AOS Sharpe Ratio is -0.18, which is lower than the AFL Sharpe Ratio of 0.90. The chart below compares the historical Sharpe Ratios of AOS and AFL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AOS vs. AFL - Drawdown Comparison

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

Drawdown Indicators

	AOS	AFL	Difference
Max Drawdown Largest peak-to-trough decline	-66.07%	-82.71%	+16.64%
Max Drawdown (1Y) Largest decline over 1 year	-30.29%	-9.11%	-21.18%
Max Drawdown (3Y) Largest decline over 3 years	-36.93%	-13.56%	-23.37%
Max Drawdown (5Y) Largest decline over 5 years	-42.68%	-19.86%	-22.82%
Max Drawdown (10Y) Largest decline over 10 years	-46.81%	-54.89%	+8.08%
Current Drawdown Current decline from peak	-33.64%	-1.43%	-32.21%
Average Drawdown Average peak-to-trough decline	-20.48%	-11.65%	-8.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.63%	3.67%	+9.96%

Volatility

AOS vs. AFL - Volatility Comparison

A. O. Smith Corporation (AOS) has a higher volatility of 8.05% compared to Aflac Incorporated (AFL) at 5.62%. This indicates that AOS's price experiences larger fluctuations and is considered to be riskier than AFL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AOS	AFL	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.05%	5.62%	+2.43%
Volatility (6M) Calculated over the trailing 6-month period	19.76%	12.03%	+7.73%
Volatility (1Y) Calculated over the trailing 1-year period	25.47%	17.11%	+8.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.18%	20.86%	+6.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.13%	25.77%	+1.36%

Dividends

AOS vs. AFL - Dividend Comparison

AOS's dividend yield for the trailing twelve months is around 2.42%, more than AFL's 2.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AFL Aflac Incorporated	2.04%	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	2.42%	2.06%	1.91%	1.84%	1.99%	1.23%	1.79%	1.89%	1.78%	0.91%	1.01%	0.99%

Financials

AOS vs. AFL - Profitability Comparison

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

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 - 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 - 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 - 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 - 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%.

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%.

Frequently Asked Questions

Can I hold both AOS and AFL in my portfolio?

AOS and AFL have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AOS or AFL?

AOS has higher volatility (8.05%) compared to AFL (5.62%). In terms of maximum drawdown, AOS dropped -66.07% vs AFL's -82.71%.

Which has better risk-adjusted returns?

AFL currently has the higher Sharpe Ratio (0.90 vs -0.18), 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.