Manulife Financial Corp (NYSE: MFC) and Athene Holding (NYSE:ATH) are both mid-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Manulife Financial Corp pays an annual dividend of $0.66 per share and has a dividend yield of 3.1%. Athene Holding does not pay a dividend. Manulife Financial Corp pays out 46.2% of its earnings in the form of a dividend. Athene Holding has increased its dividend for 3 consecutive years.
This table compares Manulife Financial Corp and Athene Holding’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Manulife Financial Corp||$40.27 billion||1.04||$2.26 billion||$1.43||14.76|
|Athene Holding||$4.11 billion||2.40||$805.00 million||$7.15||6.89|
Manulife Financial Corp has higher revenue and earnings than Athene Holding. Athene Holding 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.
Institutional and Insider Ownership
46.7% of Manulife Financial Corp shares are held by institutional investors. Comparatively, 49.0% of Athene Holding shares are held by institutional investors. 10.6% of Athene Holding shares are held 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.
This table compares Manulife Financial Corp and Athene Holding’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manulife Financial Corp||N/A||11.55%||0.64%|
This is a summary of recent recommendations and price targets for Manulife Financial Corp and Athene Holding, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manulife Financial Corp||0||1||0||0||2.00|
Manulife Financial Corp presently has a consensus price target of $27.00, indicating a potential upside of 27.90%. Athene Holding has a consensus price target of $59.25, indicating a potential upside of 20.35%. Given Manulife Financial Corp’s higher possible upside, research analysts plainly believe Manulife Financial Corp is more favorable than Athene Holding.
Athene Holding beats Manulife Financial Corp on 11 of the 16 factors compared between the two stocks.
About Manulife Financial Corp
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.
About Athene Holding
Athene Holding Ltd. is an insurance holding company. The Company’s segments include Retirement Services, Corporate and Other. Retirement Services segment consists of the United States and Bermuda operations, which issue and reinsure retirement savings products and institutional products. Retirement Services has retail operations, which provide annuity retirement solutions to its policyholders. Retirement Services has reinsurance operations, which reinsure multi-year guaranteed annuities, fixed indexed annuities, traditional one year guarantee fixed deferred annuities, immediate annuities and institutional products from its reinsurance partners. It offers two product lines: annuities and funding agreements. It offers deferred and immediate annuities, which are focused on the needs and objectives of people preparing for, approaching or living in retirement. It focuses on issuing funding agreements to institutional investors. Its life and other products include other retail products.
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