Comparing Sun Life Financial (NYSE:SLF) and Axis Capital (NYSE:AXS)

Axis Capital (NYSE:AXS – Get Free Report) and Sun Life Financial (NYSE:SLF – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Dividends

Axis Capital pays an annual dividend of $1.76 per share and has a dividend yield of 1.8%. Sun Life Financial pays an annual dividend of $2.74 per share and has a dividend yield of 3.4%. Axis Capital pays out 12.5% of its earnings in the form of a dividend. Sun Life Financial pays out 64.0% 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 11 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 Axis Capital and Sun Life Financial”s gross revenue, earnings per share and valuation.

Sun Life Financial has higher revenue and earnings than Axis Capital. Axis Capital 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.

Analyst Recommendations

This is a summary of recent recommendations for Axis Capital and Sun Life Financial, as provided by MarketBeat.

Axis Capital presently has a consensus target price of $120.31, indicating a potential upside of 26.11%. Sun Life Financial has a consensus target price of $98.67, indicating a potential upside of 23.44%. Given Axis Capital’s stronger consensus rating and higher possible upside, research analysts clearly believe Axis Capital is more favorable than Sun Life Financial.

Risk & Volatility

Axis Capital has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Sun Life Financial has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Axis Capital and Sun Life Financial’s net margins, return on equity and return on assets.

Insider & Institutional Ownership

93.4% of Axis Capital shares are held by institutional investors. Comparatively, 52.3% of Sun Life Financial shares are held by institutional investors. 0.6% of Axis Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About Axis Capital

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AXIS Capital Holdings Limited, through its subsidiaries, provides various specialty insurance and reinsurance products in Bermuda, the United States, and internationally. It operates through two segments, Insurance and Reinsurance. The Insurance segment offers professional insurance products that cover directors' and officers' liability, errors and omissions, employment practices, fiduciary, crime, professional indemnity, medical malpractice, and other financial insurance related coverages for commercial enterprises, financial institutions, not-for-profit organizations, and other professional service providers; and property insurance products for commercial buildings, residential premises, construction projects, property in transit, onshore renewable energy installations, and physical damage and business interruption following an act of terrorism. This segment also provides marine and aviation insurance services for offshore energy, renewable offshore energy, cargo, liability, including kidnap and ransom, fine art, specie, and hull war, hull and liability, and specific war coverage for passenger airlines, cargo operations, general aviation operations, airports, aviation authorities, security firms, and product manufacturers; personal accident, travel insurance, specialty health products for employer and affinity groups, and pet insurance products; and liability, cyber, and credit and political risk insurance services. The Reinsurance segment offers agriculture, marine and aviation, catastrophe, accidental and health, credit and surety, motor, professional, travel, life, engineering, property, and liability reinsurance products. AXIS Capital Holdings Limited was founded in 2001 and is headquartered in Pembroke, Bermuda.

About Sun Life Financial

(Get Free Report)

Sun Life Financial Inc., a financial services company, provides savings, retirement, and pension products worldwide. The company operates in five segments: Asset Management, Canada, U.S., Asia, and Corporate. It offers various insurance products, such as term and permanent life; personal health, which includes prescription drugs, dental, and vision care; critical illness; long-term care; and disability, as well as reinsurance. The company also provides advice for financial planning and retirement planning services; investments products, such as mutual funds, segregated funds, and annuities; and asset and investment management products consisting of pooled funds, institutional portfolios, and pension funds. In addition, it offers real estate services; manages equity capital in various private and listed funds, as well as mezzanine debt, middle market direct lending, high-yield bonds, and syndicated loans; and operates as an investment grade fixed income investor, real estate investment management advisor, infrastructure investment manager, and alternative credit investment manager. The company was formerly known as Sun Life Financial Services of Canada Inc. and changed its name to Sun Life Financial Inc. in July 2003. Sun Life Financial Inc. was founded in 1871 and is headquartered in Toronto, Canada.