Chubb (NYSE:CB) vs. Sun Life Financial (NYSE:SLF) Head-To-Head Review

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

Earnings & Valuation

This table compares Sun Life Financial and Chubb”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Life Financial	$29.99 billion	1.46	$2.68 billion	$4.28	18.36
Chubb	$59.40 billion	2.21	$10.31 billion	$28.27	12.01

Chubb has higher revenue and earnings than Sun Life Financial. Chubb is trading at a lower price-to-earnings ratio than Sun Life Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Sun Life Financial and Chubb, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Life Financial	1	5	5	1	2.50
Chubb	1	12	7	2	2.45

Sun Life Financial currently has a consensus price target of $96.33, indicating a potential upside of 22.58%. Chubb has a consensus price target of $361.00, indicating a potential upside of 6.30%. Given Sun Life Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Sun Life Financial is more favorable than Chubb.

Dividends

Sun Life Financial pays an annual dividend of $2.74 per share and has a dividend yield of 3.5%. Chubb pays an annual dividend of $4.08 per share and has a dividend yield of 1.2%. Sun Life Financial pays out 64.0% of its earnings in the form of a dividend. Chubb pays out 14.4% 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. Sun Life Financial has raised its dividend for 11 consecutive years and Chubb has raised its dividend for 31 consecutive years.

Insider and Institutional Ownership

52.3% of Sun Life Financial shares are owned by institutional investors. Comparatively, 83.8% of Chubb shares are owned by institutional investors. 0.4% of Chubb shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sun Life Financial	7.66%	17.96%	1.08%
Chubb	18.10%	14.47%	4.19%

Volatility & Risk

Sun Life Financial has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Chubb has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Summary

Chubb beats Sun Life Financial on 12 of the 18 factors compared between the two stocks.

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.

About Chubb

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical risk, cyber risk, surety, and casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm, ranch, and specialty property and casualty, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual and life, group term life, health protection, personal accident, credit life, universal life, group employee benefits, and unit linked contracts. It markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.