Sun Life Financial (SLF) versus Prudential Public Limited (PUK) Critical Contrast

Sun Life Financial (NYSE: SLF) and Prudential Public Limited (NYSE:PUK) are both large-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

40.9% of Sun Life Financial shares are owned by institutional investors. Comparatively, 1.6% of Prudential Public Limited shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sun Life Financial and Prudential Public Limited’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%
Prudential Public Limited N/A N/A N/A

Valuation and Earnings

This table compares Sun Life Financial and Prudential Public Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sun Life Financial $20.29 billion 1.17 $2.98 billion $3.17 12.18
Prudential Public Limited $102.51 billion 0.59 $6.44 billion N/A N/A

Prudential Public Limited has higher revenue and earnings than Sun Life Financial.

Volatility & Risk

Sun Life Financial has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Prudential Public Limited has a beta of 1.59, meaning that its stock price is 59% 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%. Prudential Public Limited pays an annual dividend of $0.75 per share and has a dividend yield of 1.6%. Sun Life Financial pays out 43.8% of its earnings in the form of a dividend. Prudential Public Limited has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sun Life Financial and Prudential Public Limited, 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
Prudential Public Limited 0 2 3 0 2.60

Sun Life Financial presently has a consensus price target of $47.25, suggesting a potential upside of 22.41%. Given Sun Life Financial’s higher possible upside, research analysts clearly believe Sun Life Financial is more favorable than Prudential Public Limited.

Summary

Prudential Public Limited beats Sun Life Financial on 8 of the 15 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.

Prudential Public Limited Company Profile

Prudential Public Limited Company is an international financial services company. The Company offers a range of retail financial products and services and asset management services throughout these territories. The Company operates through Insurance operations and Asset management operations. The retail financial products and services include life insurance, pensions and annuities as well as collective investment schemes. Its insurance operations include Asia, the United States (Jackson National Life Insurance Company (Jackson)) and the United Kingdom. Its asset management operations include Eastspring Investments, M&G and Prudential Capital.

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