Manulife Financial (NYSE:MFC) vs. Discovery (OTCMKTS:DCYHF) Critical Comparison

Manulife Financial (NYSE:MFC) and Discovery (OTCMKTS:DCYHF) are both financial services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings and Valuation

This table compares Manulife Financial and Discovery”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manulife Financial	$43.17 billion	1.19	$4.05 billion	$1.72	16.73
Discovery	N/A	N/A	N/A	N/A	N/A

Manulife Financial has higher revenue and earnings than Discovery.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manulife Financial	9.18%	16.16%	0.79%
Discovery	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Manulife Financial and Discovery, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manulife Financial	0	1	6	1	3.00
Discovery	0	0	0	0	N/A

Manulife Financial presently has a consensus target price of $35.67, suggesting a potential upside of 23.97%. Given Manulife Financial’s higher probable upside, equities analysts plainly believe Manulife Financial is more favorable than Discovery.

Institutional & Insider Ownership

52.6% of Manulife Financial shares are owned by institutional investors. Comparatively, 16.9% of Discovery 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.

Summary

Manulife Financial beats Discovery on 9 of the 9 factors compared between the two stocks.

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.

About Discovery

Discovery Limited provides various insurance products and services primarily in South Africa and the United Kingdom. It operates through Health South Africa, Life South Africa, Invest South Africa, Vitality South Africa, Insure South Africa, Bank South Africa, Health United Kingdom, Life United Kingdom, and All Other segments. The company offers health, life, car, travel, business, and home insurance products; motor, building, household content, and portable possessions insurance products; private medical insurance products; and commercial short-term risk insurance products. It also provides managed care services; financial solutions; investment products; retail banking solutions, including deposits and loans and advances; and Vitality, which offers health and lifestyle benefits. The company was formerly known as Discovery Holdings Limited and changed its name to Discovery Limited in December 2012. Discovery Limited was founded in 1992 and is based in Johannesburg, South Africa.