NN Group (OTCMKTS:NNGRY) vs. Sun Life Financial (NYSE:SLF) Critical Review

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

Dividends

NN Group pays an annual dividend of $1.26 per share and has a dividend yield of 3.5%. Sun Life Financial pays an annual dividend of $2.61 per share and has a dividend yield of 4.4%. Sun Life Financial pays out 69.4% of its earnings in the form of a dividend. Sun Life Financial has increased its dividend for 11 consecutive years. Sun Life Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares NN Group and Sun Life 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
Sun Life Financial	7.59%	17.21%	1.10%

Valuation & Earnings

This table compares NN Group and Sun Life Financial”s 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	1.85	$1.71 billion	N/A	N/A
Sun Life Financial	$36.21 billion	0.91	$2.31 billion	$3.76	15.72

Sun Life Financial has higher revenue and earnings than NN Group.

Analyst Ratings

This is a breakdown of current ratings and price targets for NN Group and Sun Life Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NN Group	1	5	1	1	2.25
Sun Life Financial	1	6	4	1	2.42

Sun Life Financial has a consensus target price of $86.50, indicating a potential upside of 46.31%. Given Sun Life Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Sun Life Financial is more favorable than NN Group.

Risk and Volatility

NN Group has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Sun Life Financial has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of NN Group shares are held by institutional investors. Comparatively, 52.3% of Sun Life Financial shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sun Life Financial beats NN Group on 12 of the 14 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 Sun Life Financial

Sun Life Financial Inc., a financial services company, provides savings, retirement, and pension products worldwide. The company operates in five segments: Asset Management, Canada, U.S., Asia, and Corporate. It offers various insurance products, such as term and permanent life; personal health, which includes prescription drugs, dental, and vision care; critical illness; long-term care; and disability, as well as reinsurance. The company also provides advice for financial planning and retirement planning services; investments products, such as mutual funds, segregated funds, and annuities; and asset and investment management products consisting of pooled funds, institutional portfolios, and pension funds. In addition, it offers real estate services; manages equity capital in various private and listed funds, as well as mezzanine debt, middle market direct lending, high-yield bonds, and syndicated loans; and operates as an investment grade fixed income investor, real estate investment management advisor, infrastructure investment manager, and alternative credit investment manager. The company was formerly known as Sun Life Financial Services of Canada Inc. and changed its name to Sun Life Financial Inc. in July 2003. Sun Life Financial Inc. was founded in 1871 and is headquartered in Toronto, Canada.