DFS vs. SLF, VICI, EXR, VTMX, DB, HIG, NWG, NDAQ, AVB, and ACGL
Should you be buying Discover Financial Services stock or one of its competitors? The main competitors of Discover Financial Services include Sun Life Financial (SLF), VICI Properties (VICI), Extra Space Storage (EXR), Corporación Inmobiliaria Vesta (VTMX), Deutsche Bank Aktiengesellschaft (DB), The Hartford Financial Services Group (HIG), NatWest Group (NWG), Nasdaq (NDAQ), AvalonBay Communities (AVB), and Arch Capital Group (ACGL). These companies are all part of the "finance" sector.
Discover Financial Services (NYSE:DFS) and Sun Life Financial (NYSE:SLF) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership, media sentiment, valuation and community ranking.
Discover Financial Services received 781 more outperform votes than Sun Life Financial when rated by MarketBeat users. Likewise, 73.72% of users gave Discover Financial Services an outperform vote while only 62.36% of users gave Sun Life Financial an outperform vote.
Discover Financial Services pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Sun Life Financial pays an annual dividend of $2.32 per share and has a dividend yield of 4.4%. Discover Financial Services pays out 31.9% of its earnings in the form of a dividend. Sun Life Financial pays out 59.8% 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.
Discover Financial Services has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Sun Life Financial has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Discover Financial Services presently has a consensus target price of $126.29, indicating a potential upside of 2.18%. Sun Life Financial has a consensus target price of $77.00, indicating a potential upside of 45.23%. Given Sun Life Financial's stronger consensus rating and higher probable upside, analysts plainly believe Sun Life Financial is more favorable than Discover Financial Services.
In the previous week, Discover Financial Services had 18 more articles in the media than Sun Life Financial. MarketBeat recorded 23 mentions for Discover Financial Services and 5 mentions for Sun Life Financial. Sun Life Financial's average media sentiment score of 0.74 beat Discover Financial Services' score of 0.69 indicating that Sun Life Financial is being referred to more favorably in the news media.
Discover Financial Services has higher earnings, but lower revenue than Sun Life Financial. Sun Life Financial is trading at a lower price-to-earnings ratio than Discover Financial Services, indicating that it is currently the more affordable of the two stocks.
86.9% of Discover Financial Services shares are owned by institutional investors. Comparatively, 52.3% of Sun Life Financial shares are owned by institutional investors. 0.5% of Discover Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Discover Financial Services has a net margin of 10.56% compared to Sun Life Financial's net margin of 7.79%. Sun Life Financial's return on equity of 17.30% beat Discover Financial Services' return on equity.
Summary
Discover Financial Services beats Sun Life Financial on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DFS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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