Contrasting Discovery (OTCMKTS:DCYHF) & Manulife Financial (NYSE:MFC)

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

Institutional & Insider Ownership

16.9% of Discovery shares are owned by institutional investors. Comparatively, 52.6% of Manulife Financial shares are owned by institutional investors. 0.0% of Manulife Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Discovery and Manulife Financial, as reported by MarketBeat.

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

Manulife Financial has a consensus price target of $35.67, suggesting a potential upside of 22.10%. Given Manulife Financial’s higher probable upside, analysts plainly believe Manulife Financial is more favorable than Discovery.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Discovery	N/A	N/A	N/A	N/A	N/A
Manulife Financial	$43.17 billion	1.21	$4.05 billion	$1.72	16.98

Manulife Financial has higher revenue and earnings than Discovery.

Summary

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

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.

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.