CNO Financial Group (NYSE: CNO) and Manulife Financial Corp (NYSE:MFC) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
This table compares CNO Financial Group and Manulife Financial Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CNO Financial Group||11.41%||5.88%||0.85%|
|Manulife Financial Corp||N/A||11.55%||0.64%|
Institutional & Insider Ownership
94.2% of CNO Financial Group shares are owned by institutional investors. Comparatively, 45.9% of Manulife Financial Corp shares are owned by institutional investors. 2.0% of CNO Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for CNO Financial Group and Manulife Financial Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CNO Financial Group||1||6||2||0||2.11|
|Manulife Financial Corp||0||1||1||0||2.50|
CNO Financial Group presently has a consensus target price of $21.71, indicating a potential downside of 8.46%. Manulife Financial Corp has a consensus target price of $27.00, indicating a potential upside of 28.14%. Given Manulife Financial Corp’s stronger consensus rating and higher probable upside, analysts clearly believe Manulife Financial Corp is more favorable than CNO Financial Group.
Volatility & Risk
CNO Financial Group has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Manulife Financial Corp has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
CNO Financial Group pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Manulife Financial Corp pays an annual dividend of $0.66 per share and has a dividend yield of 3.1%. CNO Financial Group pays out 13.0% of its earnings in the form of a dividend. Manulife Financial Corp pays out 47.1% 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. CNO Financial Group has increased its dividend for 3 consecutive years and Manulife Financial Corp has increased its dividend for 4 consecutive years. Manulife Financial Corp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares CNO Financial Group and Manulife Financial Corp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|CNO Financial Group||$3.99 billion||1.00||$358.20 million||$2.77||8.56|
|Manulife Financial Corp||$40.27 billion||1.04||$2.26 billion||$1.40||15.05|
Manulife Financial Corp has higher revenue and earnings than CNO Financial Group. CNO Financial Group is trading at a lower price-to-earnings ratio than Manulife Financial Corp, indicating that it is currently the more affordable of the two stocks.
Manulife Financial Corp beats CNO Financial Group on 9 of the 17 factors compared between the two stocks.
CNO Financial Group Company Profile
CNO Financial Group, Inc. is a holding company for a group of insurance companies operating throughout the United States that develops, markets and administers health insurance, annuity, individual life insurance and other insurance products. The Company’s segments include Bankers Life, Washington National and Colonial Penn. It sells health insurance, annuity, individual life insurance and other insurance products through three primary distribution channels: career agents, independent producers and direct marketing. The Company offers products in various categories, including health, annuities and life insurance. The health products include Medicare supplement, long-term care, prescription drug plan and Medicare advantage, supplemental health products and other health products. The annuities products include fixed index annuities and other fixed interest annuities. The life insurance products include interest-sensitive life products and traditional life products.
Manulife Financial Corp Company Profile
Manulife Financial Corporation (MFC) is a holding company of The Manufacturers Life Insurance Company (MLI), which is a life insurance company, and John Hancock Reassurance Company Ltd. (JHRECO), which is a reinsurance company. The Company operates as a financial services company with principal operations in Asia, Canada and the United States. The Company’s segments include Asia Division, Canadian Division, U.S. Division, and the Corporate and Other. The Company operates as Manulife in Canada and Asia and primarily as John Hancock in the United States. The product and service offerings under its Asia, Canadian and U.S. Divisions include Protection, Wealth and Asset Management, and Other Wealth. The Corporate and Other segment includes external asset management business, Property and Casualty (P&C) Reinsurance Business, and run-off reinsurance operations, including variable annuities, and accident and health.
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