Sun Life Financial (NYSE: SLF) is one of 29 public companies in the “Life & Health Insurance” industry, but how does it contrast to its competitors? We will compare Sun Life Financial to similar businesses based on the strength of its profitability, institutional ownership, valuation, dividends, analyst recommendations, risk and earnings.

Risk & Volatility

Sun Life Financial has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Sun Life Financial’s competitors have a beta of 1.29, meaning that their average share price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sun Life Financial and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sun Life Financial $20.89 billion $3.07 billion 12.56
Sun Life Financial Competitors $28.59 billion $2.35 billion 53.57

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.

Dividends

Sun Life Financial pays an annual dividend of $1.39 per share and has a dividend yield of 3.5%. 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 2.2% and pay out 35.9% of their earnings in the form of a dividend.

Profitability

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 5.21% 1.96% 1.96%

Analyst Recommendations

This is a summary of current ratings and recommmendations 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 9 1 0 2.10
Sun Life Financial Competitors 231 1111 1663 80 2.52

Sun Life Financial presently has a consensus target price of $51.25, suggesting a potential upside of 28.77%. As a group, “Life & Health Insurance” companies have a potential upside of 7.45%. Given Sun Life Financial’s higher probable upside, research analysts clearly believe Sun Life Financial is more favorable than its competitors.

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. 9.6% of shares of all “Life & Health Insurance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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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