Sun Life Financial (NYSE: SLF) and Aegon NV (NYSE:AEG) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares Sun Life Financial and Aegon NV’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sun Life Financial $20.23 billion 1.17 $2.97 billion $3.17 12.14
Aegon NV $62.82 billion 0.20 $3.16 billion $0.91 6.31

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

Dividends

Sun Life Financial pays an annual dividend of $1.27 per share and has a dividend yield of 3.3%. Aegon NV pays an annual dividend of $0.24 per share and has a dividend yield of 4.2%. Sun Life Financial pays out 40.1% of its earnings in the form of a dividend. Aegon NV pays out 26.4% 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. Aegon NV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Sun Life Financial has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Aegon NV has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Institutional & Insider Ownership

43.0% of Sun Life Financial shares are held by institutional investors. Comparatively, 10.3% of Aegon NV shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sun Life Financial and Aegon NV’s 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%
Aegon NV 5.18% 6.73% 0.40%

Analyst Ratings

This is a summary of recent recommendations and price targets for Sun Life Financial and Aegon NV, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Life Financial 0 8 2 0 2.20
Aegon NV 0 3 2 0 2.40

Sun Life Financial presently has a consensus target price of $47.25, suggesting a potential upside of 22.79%. Aegon NV has a consensus target price of $5.00, suggesting a potential downside of 12.89%. Given Sun Life Financial’s higher probable upside, equities analysts plainly believe Sun Life Financial is more favorable than Aegon NV.

Summary

Sun Life Financial beats Aegon NV on 8 of the 14 factors compared between the two stocks.

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.

Aegon NV Company Profile

Aegon N.V. (Aegon) is an international life insurance, pensions and asset management company. The Company’s segments include the Americas, which includes the United States, Mexico and Brazil; the Netherlands; the United Kingdom; Central & Eastern Europe; Spain & Portugal; Asia, and Aegon Asset Management. It offers protection against mortality, morbidity and longevity risks, including traditional and universal life. It offers products with mortality, morbidity, and longevity risks, including traditional and universal life; mortgages; annuity products, and banking products. It offers individual protection products, such as annuities, term insurance, income protection and international/offshore bonds. It has activities in the Czech Republic, Hungary, Poland, Romania, Slovakia and Turkey. It offers life insurance marketed to high-net-worth individuals in Hong Kong and Singapore. It also offers investment products covering third-party customers, insurance-linked solutions.

Receive News & Ratings for Sun Life Financial Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sun Life Financial Inc. and related companies with MarketBeat.com's FREE daily email newsletter.