Voya Financial (NYSE: VOYA) and Manulife Financial Corp (NYSE:MFC) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitabiliy and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Voya Financial and Manulife Financial Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Voya Financial 1 2 8 0 2.64
Manulife Financial Corp 0 3 6 0 2.67

Voya Financial presently has a consensus price target of $43.50, indicating a potential upside of 16.06%. Manulife Financial Corp has a consensus price target of $22.00, indicating a potential upside of 13.46%. Given Voya Financial’s higher possible upside, equities analysts plainly believe Voya Financial is more favorable than Manulife Financial Corp.

Profitability

This table compares Voya Financial and Manulife Financial Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Voya Financial -7.64% 3.78% 0.26%
Manulife Financial Corp N/A 10.56% 0.58%

Risk & Volatility

Voya Financial has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500. Comparatively, Manulife Financial Corp has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

48.6% of Manulife Financial Corp shares are held by institutional investors. 0.2% of Voya Financial shares are held by company 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.

Earnings and Valuation

This table compares Voya Financial and Manulife Financial Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Voya Financial $9.99 billion 0.70 -$486.40 million ($3.93) -9.54
Manulife Financial Corp $33.62 billion 1.14 $4.11 billion $1.18 16.43

Manulife Financial Corp has higher revenue and earnings than Voya Financial. Voya Financial is trading at a lower price-to-earnings ratio than Manulife Financial Corp, indicating that it is currently the more affordable of the two stocks.

Dividends

Voya Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Manulife Financial Corp pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Voya Financial pays out -1.0% of its earnings in the form of a dividend. Manulife Financial Corp pays out 50.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Voya Financial has increased its dividend for 3 consecutive years.

Summary

Manulife Financial Corp beats Voya Financial on 11 of the 17 factors compared between the two stocks.

About Voya Financial

Voya Financial, Inc. is a retirement, investment and insurance company. The Company operates through five segments: Retirement, Investment Management, Annuities, Individual Life and Employee Benefits. The Retirement segment is a provider of retirement services and products in the United States. The Investment Management segment offers domestic and international fixed income, equity, multi-asset and alternatives products and solutions. The Annuities segment provides fixed and indexed annuities, tax-qualified mutual fund custodial and other investment-only products and payout annuities for pre-retirement wealth accumulation and post-retirement income management sold through multiple channels. The Individual Life segment provides wealth protection and transfer opportunities through universal and variable products. The Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses.

About Manulife Financial Corp

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.

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