Critical Review: Manulife Financial Corp (MFC) & The Competition
Manulife Financial Corp (NYSE: MFC) is one of 29 publicly-traded companies in the “Life & Health Insurance” industry, but how does it weigh in compared to its peers? We will compare Manulife Financial Corp to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
Manulife Financial Corp has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Manulife Financial Corp’s peers have a beta of 1.29, indicating that their average share price is 29% more volatile than the S&P 500.
Manulife Financial Corp pays an annual dividend of $0.66 per share and has a dividend yield of 3.3%. Manulife Financial Corp pays out 47.8% of its earnings in the form of a dividend. As a group, “Life & Health Insurance” companies pay a dividend yield of 2.2% and pay out 35.9% of their earnings in the form of a dividend. Manulife Financial Corp has increased its dividend for 3 consecutive years.
This table compares Manulife Financial Corp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manulife Financial Corp||N/A||11.33%||0.62%|
|Manulife Financial Corp Competitors||5.21%||1.96%||1.96%|
Valuation & Earnings
This table compares Manulife Financial Corp and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Manulife Financial Corp||$32.65 billion||$4.97 billion||14.67|
|Manulife Financial Corp Competitors||$28.59 billion||$2.35 billion||53.18|
Manulife Financial Corp has higher revenue and earnings than its peers. Manulife Financial Corp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current ratings and target prices for Manulife Financial Corp and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manulife Financial Corp||0||1||4||0||2.80|
|Manulife Financial Corp Competitors||231||1111||1663||80||2.52|
Manulife Financial Corp currently has a consensus price target of $25.00, suggesting a potential upside of 23.46%. As a group, “Life & Health Insurance” companies have a potential upside of 8.79%. Given Manulife Financial Corp’s stronger consensus rating and higher possible upside, analysts plainly believe Manulife Financial Corp is more favorable than its peers.
Insider and Institutional Ownership
46.0% of Manulife Financial Corp shares are held by institutional investors. Comparatively, 68.4% of shares of all “Life & Health Insurance” companies are held by institutional investors. 9.6% of shares of all “Life & Health Insurance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Manulife Financial Corp beats its peers on 8 of the 15 factors compared.
Manulife Financial Corp Company Profile
Manulife Financial Corporation (MFC) is a holding company of The Manufacturers Life Insurance Company (MLI), which is a life insurance company, and John Hancock Reassurance Company Ltd. (JHRECO), which is a reinsurance company. The Company operates as a financial services company with principal operations in Asia, Canada and the United States. The Company’s segments include Asia Division, Canadian Division, U.S. Division, and the Corporate and Other. The Company operates as Manulife in Canada and Asia and primarily as John Hancock in the United States. The product and service offerings under its Asia, Canadian and U.S. Divisions include Protection, Wealth and Asset Management, and Other Wealth. The Corporate and Other segment includes external asset management business, Property and Casualty (P&C) Reinsurance Business, and run-off reinsurance operations, including variable annuities, and accident and health.
Receive News & Stock Ratings for Manulife Financial Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Manulife Financial Corp and related stocks with our FREE daily email newsletter.