Manulife Financial vs Sun Life Financial Which Outperforms?

Manulife Financial and Sun Life Financial are two of the leading Canadian financial services companies with a strong presence in the insurance and wealth management sectors. Both companies have a long history of serving customers and generating consistent returns for their shareholders. However, there are key differences in their business models, growth strategies, and financial performance that investors should consider when comparing their stocks. In this analysis, we will delve into the strengths and weaknesses of Manulife Financial and Sun Life Financial stocks to help investors make informed decisions.

Manulife Financial or Sun Life Financial?

When comparing Manulife Financial and Sun Life Financial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Manulife Financial and Sun Life Financial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Manulife Financial has a dividend yield of 3.87%, while Sun Life Financial has a dividend yield of 4.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Manulife Financial reports a 5-year dividend growth of 8.76% year and a payout ratio of 64.95%. On the other hand, Sun Life Financial reports a 5-year dividend growth of 8.65% year and a payout ratio of 57.83%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Manulife Financial P/E ratio at 17.10 and Sun Life Financial's P/E ratio at 14.34. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Manulife Financial P/B ratio is 1.65 while Sun Life Financial's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Manulife Financial has seen a 5-year revenue growth of 0.23%, while Sun Life Financial's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Manulife Financial's ROE at 9.84% and Sun Life Financial's ROE at 14.17%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.94 for Manulife Financial and $59.48 for Sun Life Financial. Over the past year, Manulife Financial's prices ranged from $18.56 to $32.94, with a yearly change of 77.48%. Sun Life Financial's prices fluctuated between $46.41 and $59.92, with a yearly change of 29.11%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.