Sun Life Financial (OTCMKTS: ODMTY) and OLD Mut PLC/ADR (OTCMKTS:ODMTY) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
This is a breakdown of current recommendations and price targets for Sun Life Financial and OLD Mut PLC/ADR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sun Life Financial||0||2||4||0||2.67|
|OLD Mut PLC/ADR||0||0||0||0||N/A|
Sun Life Financial currently has a consensus price target of $57.00, suggesting a potential upside of 45.63%. Given Sun Life Financial’s higher probable upside, equities research analysts plainly believe Sun Life Financial is more favorable than OLD Mut PLC/ADR.
Volatility & Risk
Sun Life Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, OLD Mut PLC/ADR has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
This table compares Sun Life Financial and OLD Mut PLC/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sun Life Financial||9.24%||13.44%||1.05%|
|OLD Mut PLC/ADR||N/A||N/A||N/A|
Insider and Institutional Ownership
41.2% of Sun Life Financial shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Sun Life Financial pays an annual dividend of $1.46 per share and has a dividend yield of 3.7%. OLD Mut PLC/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 3.2%. Sun Life Financial pays out 45.6% of its earnings in the form of a dividend. Sun Life Financial has raised its dividend for 2 consecutive years. Sun Life Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Sun Life Financial and OLD Mut PLC/ADR’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sun Life Financial||$22.62 billion||1.05||$1.92 billion||$3.20||12.23|
|OLD Mut PLC/ADR||$13.35 billion||1.01||$1.17 billion||N/A||N/A|
Sun Life Financial has higher revenue and earnings than OLD Mut PLC/ADR.
Sun Life Financial beats OLD Mut PLC/ADR on 11 of the 13 factors compared between the two stocks.
About Sun Life Financial
Sun Life Financial Inc., a financial services company, provides insurance, wealth, and asset management solutions to individuals and corporate clients, high-net-worth individuals, and families. It operates through Sun Life Financial Canada, Sun Life Financial United States, Sun Life Financial Asset Management, Sun Life Financial Asia, and Corporate segments. The company offers life, health, long-term and short-term disability, absence management, medical stop-loss, and dental insurance, as well as vision and voluntary insurance, such as accident and critical illness. It also provides a suite of voluntary benefits solutions to individual plan members, including post-employment life and health plans; asset management and group retirement products and services; and contribution pension plans and defined benefit solutions, as well as mutual funds. The company distributes its products through direct sales agents, managing general agents, independent general agents, financial intermediaries, broker-dealers, banks, pension and benefits consultants, and other third-party marketing organizations. Sun Life Financial Inc. was founded in 1999 and is headquartered in Toronto, Canada.
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