Sun Life Financial (NYSE:SLF) and Aegon (NYSE:AEG) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Sun Life Financial and Aegon, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Sun Life Financial | 1 | 3 | 8 | 0 | 2.58 |
Aegon | 4 | 13 | 2 | 0 | 1.89 |
Sun Life Financial presently has a consensus target price of $64.10, indicating a potential upside of 33.37%. Given Sun Life Financial's stronger consensus rating and higher possible upside, equities research analysts plainly believe Sun Life Financial is more favorable than Aegon.
Profitability
This table compares Sun Life Financial and Aegon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Sun Life Financial | 6.19% | 14.09% | 1.07% |
Aegon | N/A | N/A | N/A |
Earnings and Valuation
This table compares Sun Life Financial and Aegon's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Sun Life Financial | $29.90 billion | 0.94 | $2.22 billion | $3.89 | 12.35 |
Aegon | $31.58 billion | 0.40 | $1.39 billion | $0.92 | 5.14 |
Sun Life Financial has higher earnings, but lower revenue than Aegon. Aegon 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 $1.65 per share and has a dividend yield of 3.4%. Aegon pays an annual dividend of $0.14 per share and has a dividend yield of 3.0%. Sun Life Financial pays out 42.4% of its earnings in the form of a dividend. Aegon pays out 15.2% 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. Sun Life Financial has increased its dividend for 1 consecutive years and Aegon has increased its dividend for 1 consecutive years.
Risk & Volatility
Sun Life Financial has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Aegon has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Institutional and Insider Ownership
43.6% of Sun Life Financial shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Sun Life Financial beats Aegon on 12 of the 15 factors compared between the two stocks.