
TSE:MFC
MFC vs. SLF They're both good and relatively safe. They both have asset management businesses. Earnings growth will be 7-11% in 2020, which is far higher than the 1-3% for the banks. Also, they trade at single-digit multiples, cheap. According to book value, SLF is far more expensive, so he prefers MFC. MFC has more upside than SLF, but you're splitting hairs with these two.
MFC vs. Arc Arc is riskier while MFC is steadier. MFC is at an excellent price now, close to book value and offers a 12% ROE. Best in this sector with great Asian growth potential. They have a long way to sort out problems with long-term care in the U.S. Arc is good if you want more torque in your portfolio.
$35.19 is his model price, 46% upside. MFC has never gotten any respect, but he watches it. SunLife has better metrics. There's a lot of value in MFC, but financials as a whole are risky now. MFC is stuck in purgatory. Sell if it breaks below $22.60. He owns a little of this. He hasn't made up his mind about MFC.