Sun Life Financial (NYSE: SLF) is one of 31 public companies in the “Life & Health Insurance” industry, but how does it compare to its competitors? We will compare Sun Life Financial to similar businesses based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.
Sun Life Financial pays an annual dividend of $1.39 per share and has a dividend yield of 3.6%. Sun Life Financial pays out 43.8% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.3% and pay out 35.9% of their earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for Sun Life Financial and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sun Life Financial||0||8||2||0||2.20|
|Sun Life Financial Competitors||348||1376||1887||80||2.46|
Sun Life Financial presently has a consensus price target of $47.25, indicating a potential upside of 22.41%. As a group, “Life & Health Insurance” companies have a potential upside of 10.80%. Given Sun Life Financial’s higher probable upside, research analysts clearly believe Sun Life Financial is more favorable than its competitors.
Risk and Volatility
Sun Life Financial has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Sun Life Financial’s competitors have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.
Institutional and Insider Ownership
40.9% of Sun Life Financial shares are owned by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are owned by institutional investors. 9.5% of shares of all “Life & Health Insurance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Sun Life Financial and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sun Life Financial||12.48%||13.29%||1.03%|
|Sun Life Financial Competitors||4.00%||1.18%||1.80%|
Valuation and Earnings
This table compares Sun Life Financial and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Sun Life Financial||$20.29 billion||$2.98 billion||12.18|
|Sun Life Financial Competitors||$28.39 billion||$2.33 billion||49.31|
Sun Life Financial’s competitors have higher revenue, but lower earnings than Sun Life Financial. Sun Life Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Sun Life Financial competitors beat Sun Life Financial on 10 of the 15 factors compared.
Sun Life Financial Company Profile
Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. The Company is a financial services company providing a range of insurance, wealth and asset management solutions to individuals and corporate Clients. It operates through five segments. The Sun Life Financial Canada segment provides retail insurance and investment advice, products and services to people across Canada. The SLF U.S. segment has three business units: Group Benefits, International and In-force Management. Its Sun Life Financial Asset Management segment consists of MFS Investment Management and Sun Life Investment Management. The SLF Asia segment operates through subsidiaries in the Philippines, Hong Kong, Indonesia and Vietnam, as well as through joint ventures and associates with local partners in the Philippines, India, China and Malaysia. Its Corporate segment includes SLF U.K. and Corporate Support. Corporate Support operations consist of its Run-off reinsurance business.
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