Sun Life Financial (NYSE: SLF) is one of 31 public companies in the “Life & Health Insurance” industry, but how does it contrast to its peers? We will compare Sun Life Financial to related businesses based off the strength of its valuation, profitability, dividends, institutional ownership, risk, earnings and analyst recommendations.

Volatility and Risk

Sun Life Financial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Sun Life Financial’s peers have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Dividends

Sun Life Financial pays an annual dividend of $1.39 per share and has a dividend yield of 3.6%. 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 2.4% and pay out 35.9% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Sun Life Financial and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sun Life Financial $20.02 billion $2.94 billion 12.07
Sun Life Financial Competitors $28.24 billion $2.32 billion 47.87

Sun Life Financial’s peers have higher revenue, but lower earnings than Sun Life Financial. Sun Life Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for Sun Life Financial and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Life Financial 0 8 2 0 2.20
Sun Life Financial Competitors 347 1367 1872 80 2.46

Sun Life Financial presently has a consensus price target of $47.25, suggesting a potential upside of 23.46%. All “Life & Health Insurance” companies have a potential upside of 9.40%. Given Sun Life Financial’s higher possible upside, research analysts clearly believe Sun Life Financial is more favorable than its peers.

Institutional & 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. 9.5% of shares of all “Life & Health Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Sun Life Financial and its peers’ 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 4.00% 1.18% 1.80%

Summary

Sun Life Financial peers beat Sun Life Financial on 10 of the 15 factors compared.

About Sun Life Financial

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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