Sun Life Financial vs Manulife Financial Which Is More Attractive?

Sun Life Financial and Manulife Financial are two prominent financial services companies in Canada, both offering a range of products and services including insurance, wealth management, and investment solutions. Investors considering these companies for their portfolio may want to compare and contrast how they have performed in terms of stock performance, growth potential, dividends, and overall stability. By examining the historical data and current market trends of Sun Life and Manulife stocks, investors can make informed decisions about which company may be a better investment opportunity for their financial goals.

Sun Life Financial or Manulife Financial?

When comparing Sun Life Financial and Manulife 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 Sun Life Financial and Manulife 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. Sun Life Financial has a dividend yield of 4.3%, while Manulife Financial has a dividend yield of 4.12%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sun Life Financial reports a 5-year dividend growth of 8.65% year and a payout ratio of 51.91%. On the other hand, Manulife Financial reports a 5-year dividend growth of 8.76% year and a payout ratio of 54.64%.

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 Sun Life Financial P/E ratio at 13.01 and Manulife Financial's P/E ratio at 13.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sun Life Financial P/B ratio is 1.96 while Manulife Financial's P/B ratio is 1.56.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sun Life Financial has seen a 5-year revenue growth of 0.15%, while Manulife Financial's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sun Life Financial's ROE at 15.69% and Manulife Financial's ROE at 11.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $60.10 for Sun Life Financial and $30.75 for Manulife Financial. Over the past year, Sun Life Financial's prices ranged from $46.41 to $62.85, with a yearly change of 35.42%. Manulife Financial's prices fluctuated between $20.78 and $33.07, with a yearly change of 59.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.