Critical Review: CNP Assurances (OTCMKTS:CNPAY) & Manulife Financial (NYSE:MFC)

Manulife Financial (NYSE:MFC) and CNP Assurances (OTCMKTS:CNPAY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares Manulife Financial and CNP Assurances’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manulife Financial	$36.10 billion	1.20	$4.05 billion	$1.93	12.45
CNP Assurances	N/A	N/A	N/A	N/A	N/A

Manulife Financial has higher revenue and earnings than CNP Assurances.

Analyst Ratings

This is a summary of current recommendations and price targets for Manulife Financial and CNP Assurances, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manulife Financial	0	0	5	0	3.00
CNP Assurances	0	0	0	0	N/A

Manulife Financial currently has a consensus target price of $33.33, suggesting a potential upside of 38.77%. Given Manulife Financial’s higher possible upside, research analysts plainly believe Manulife Financial is more favorable than CNP Assurances.

Profitability

This table compares Manulife Financial and CNP Assurances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manulife Financial	10.42%	15.98%	0.78%
CNP Assurances	N/A	N/A	N/A

Insider & Institutional Ownership

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

Summary

Manulife Financial beats CNP Assurances on 8 of the 8 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 CNP Assurances

CNP Assurances SA (ENXTPA:CNP) provides insurance, coinsurance, and reinsurance solutions in France, Latin America, and other European countries. It offers life, accident, long-term care, death and funerals, disability, unemployment, loss of income, health, and dental insurance products; property and casualty insurance, such as home-owner and auto insurance; term creditor and guarantee insurance products, including home and business loans, and consumer finance; solutions in the area of guarantees for real estate loans in private market; and pension plans, as well as support and assistance services. The company was founded in 1850 and is headquartered in Paris, France. CNP Assurances SA (ENXTPA:CNP) operates as a subsidiary of La Banque Postale S.A.