National Western Life Group (NWLI) versus Sun Life Financial (SLF) Head to Head Comparison

National Western Life Group (NASDAQ: NWLI) and Sun Life Financial (NYSE:SLF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Earnings & Valuation

This table compares National Western Life Group and Sun Life Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Western Life Group $874.45 million 1.30 $110.42 million N/A N/A
Sun Life Financial $22.62 billion 1.07 $1.92 billion $3.20 12.48

Sun Life Financial has higher revenue and earnings than National Western Life Group.

Dividends

National Western Life Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.1%. Sun Life Financial pays an annual dividend of $1.48 per share and has a dividend yield of 3.7%. Sun Life Financial pays out 46.3% 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.

Volatility and Risk

National Western Life Group has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Sun Life Financial has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for National Western Life Group and Sun Life Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Western Life Group 0 0 0 0 N/A
Sun Life Financial 0 3 3 0 2.50

Sun Life Financial has a consensus price target of $55.50, indicating a potential upside of 38.96%. Given Sun Life Financial’s higher possible upside, analysts clearly believe Sun Life Financial is more favorable than National Western Life Group.

Institutional and Insider Ownership

79.6% of National Western Life Group shares are owned by institutional investors. Comparatively, 42.4% of Sun Life Financial shares are owned by institutional investors. 0.5% of National Western Life Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares National Western Life Group and Sun Life Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Western Life Group 14.56% 5.71% 0.85%
Sun Life Financial 8.30% 13.27% 1.04%

Summary

Sun Life Financial beats National Western Life Group on 9 of the 15 factors compared between the two stocks.

About National Western Life Group

National Western Life Group, Inc., through its subsidiary, National Western Life Insurance Company, operates as a stock life insurance company. It operates through Domestic Life Insurance, International Life Insurance, and Annuities segments. The company provides life insurance products for the savings and protection needs of policyholders; and annuity contracts for the asset accumulation and retirement needs of contract holders. Its life products include universal life insurance, interest-sensitive whole life insurance, and traditional products comprising term insurance coverage; and annuity products, such as flexible premium and single premium deferred annuities, equity-index annuities, and single premium immediate annuities. The company also engages in real estate, nursing home, and other investment activities. National Western Life Group, Inc. markets and distributes its insurance products primarily through independent national marketing organizations. The company was founded in 1956 and is based in Austin, Texas.

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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