Head to Head Analysis: Manulife Financial (NYSE:MFC) and NN Group (OTCMKTS:NNGRY)

NN Group (OTCMKTS:NNGRY) and Manulife Financial (NYSE:MFC) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Dividends

NN Group pays an annual dividend of $1.26 per share and has a dividend yield of 3.6%. Manulife Financial pays an annual dividend of $1.27 per share and has a dividend yield of 4.0%. Manulife Financial pays out 56.7% of its earnings in the form of a dividend. Manulife Financial has increased its dividend for 12 consecutive years. Manulife Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares NN Group and Manulife Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NN Group	$10.28 billion	1.78	$1.71 billion	N/A	N/A
Manulife Financial	$38.90 billion	1.39	$4.11 billion	$2.24	14.26

Manulife Financial has higher revenue and earnings than NN Group.

Profitability

This table compares NN Group and Manulife Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NN Group	N/A	N/A	N/A
Manulife Financial	10.46%	15.77%	0.74%

Institutional & Insider Ownership

0.0% of NN Group shares are owned by institutional investors. Comparatively, 52.6% of Manulife Financial shares are owned by institutional investors. 0.0% of Manulife Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

NN Group has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Manulife Financial has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for NN Group and Manulife Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NN Group	1	6	0	1	2.13
Manulife Financial	0	0	2	1	3.33

Manulife Financial has a consensus price target of $48.50, indicating a potential upside of 51.83%. Given Manulife Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Manulife Financial is more favorable than NN Group.

Summary

Manulife Financial beats NN Group on 13 of the 15 factors compared between the two stocks.

About NN Group

NN Group N.V., a financial services company, provides life and non-life insurance products in the Netherlands and internationally. The company operates through Netherlands Life, Netherlands Non-life, Insurance Europe, Japan Life, Banking, and Other segments. It offers Life insurance products, such as group and individual pension products, retail life insurance, and SME life insurance products; and non-life insurance products, including motor, fire, liability, transport, travel, health, property and casualty, and disability and accident insurance products. The company also provides banking services, including mortgage loans, bank annuities, consumer savings, and retail savings and investment products; reinsurance services; and retirement products and services. It offers its products to individuals, small and medium-sized enterprises, and Corporates customers directly through tied agents, agents/ brokers, platform insurance, and direct channels. The company was formerly known as ING Insurance Topholding N.V. and changed its name to NN Group N.V. in March 2014. NN Group N.V. was founded in 1845 and is headquartered in the Hague, the Netherlands.

About Manulife Financial

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in the United States, Canada, Asia, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; and Corporate and Other segments. The Wealth and Asset Management Businesses segment offers investment advice and solutions to retirement, retail, and institutional clients through multiple distribution channels, including agents and brokers affiliated with the company, independent securities brokerage firms and financial advisors pension plan consultants, and banks. The Insurance and Annuity Products segment provides deposit and credit products; and individual life insurance, individual and group long-term care insurance, and guaranteed and partially guaranteed annuity products through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in the property and casualty reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. The company also manages timberland and agricultural portfolios; and engages in insurance agency, investment counseling and dealer, portfolio and mutual fund management, property and casualty insurance, and mutual fund dealer businesses. In addition, it provides integrated banking products and services. The company was incorporated in 1887 and is headquartered in Toronto, Canada.