Manulife Financial (NYSE:MFC) and Everest Group (NYSE:EG) Critical Review

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

Volatility & Risk

Everest Group has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500. Comparatively, Manulife Financial has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Everest Group and Manulife Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	11	5	0	2.31
Manulife Financial	0	1	5	2	3.12

Everest Group currently has a consensus price target of $408.38, indicating a potential upside of 10.88%. Manulife Financial has a consensus price target of $59.00, indicating a potential upside of 38.98%. Given Manulife Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Manulife Financial is more favorable than Everest Group.

Dividends

Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.2%. Manulife Financial pays an annual dividend of $1.38 per share and has a dividend yield of 3.3%. Everest Group pays out 16.9% of its earnings in the form of a dividend. Manulife Financial pays out 51.5% 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. Everest Group has raised its dividend for 1 consecutive years and Manulife Financial has raised 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	11.41%	13.63%	3.37%
Manulife Financial	9.99%	16.68%	0.75%

Earnings & Valuation

This table compares Everest 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
Everest Group	$16.42 billion	0.86	$1.59 billion	$47.29	7.79
Manulife Financial	$57.48 billion	1.23	$4.14 billion	$2.68	15.84

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

Institutional & Insider Ownership

92.6% of Everest Group shares are held by institutional investors. Comparatively, 52.6% of Manulife Financial shares are held by institutional investors. 0.7% of Everest Group shares are held by company insiders. Comparatively, 0.0% of Manulife Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Manulife Financial beats Everest Group on 11 of the 17 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

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.