Unum Group (UNM) vs. Symetra Financial (SYA) Head to Head Comparison

Unum Group (NYSE: UNM) and Symetra Financial (NYSE:SYA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Earnings and Valuation

This table compares Unum Group and Symetra Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unum Group $11.29 billion 1.05 $931.40 million $4.38 12.03
Symetra Financial N/A N/A N/A $1.36 N/A

Unum Group has higher revenue and earnings than Symetra Financial. Symetra Financial is trading at a lower price-to-earnings ratio than Unum Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Unum Group and Symetra Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unum Group 2 8 2 0 2.00
Symetra Financial 0 0 0 0 N/A

Unum Group presently has a consensus price target of $55.50, suggesting a potential upside of 5.29%.

Institutional & Insider Ownership

91.5% of Unum Group shares are owned by institutional investors. 0.5% of Unum Group shares are owned by 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 Unum Group and Symetra Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unum Group 8.81% 10.51% 1.54%
Symetra Financial 3.63% 2.50% 0.23%

Dividends

Unum Group pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. Symetra Financial pays an annual dividend of $0.44 per share. Unum Group pays out 21.0% of its earnings in the form of a dividend. Symetra Financial pays out 32.4% 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. Unum Group has raised its dividend for 9 consecutive years. Unum Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Unum Group beats Symetra Financial on 11 of the 12 factors compared between the two stocks.

About Unum Group

Unum Group is a provider of financial protection benefits in the United States and the United Kingdom. The Company’s products include disability, life, accident, critical illness, dental and vision, and other related services. Its segments include Unum US, Unum UK, Colonial Life, Closed Block and Corporate. Its Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. Its Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include dental, individual disability and critical illness products. Its Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products issued primarily by Colonial Life & Accident Insurance Company and marketed to employees. Its Closed Block segment consists of other insurance products.

About Symetra Financial

Symetra Financial Corporation is a financial services company in the life insurance industry. The Company’s products are distributed domestically in all states and the District of Columbia through benefits consultants, financial institutions, broker-dealers and independent agents and advisers. It has three divisions: Benefits Division, Retirement Division and Individual Life Division. The Company’s Benefits Division provides medical stop-loss insurance, group life and disability income (DI) insurance, and limited benefit medical insurance as its principal products. The Company’s Retirement Division provides products that help its customers prepare for retirement and includes the Deferred Annuities and Income Annuities segments. The Company’s Individual Life division sells life insurance products.

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