Metlife (NYSE:MET) and OLD Mut PLC/ADR (OTCMKTS:ODMTY) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
77.3% of Metlife shares are held by institutional investors. 0.3% of Metlife shares are held 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.
This table compares Metlife and OLD Mut PLC/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|OLD Mut PLC/ADR||N/A||N/A||N/A|
Earnings and Valuation
This table compares Metlife and OLD Mut PLC/ADR’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Metlife||$62.09 billion||0.72||$4.01 billion||$4.50||10.04|
|OLD Mut PLC/ADR||N/A||N/A||N/A||N/A||N/A|
Metlife has higher revenue and earnings than OLD Mut PLC/ADR.
Metlife pays an annual dividend of $1.68 per share and has a dividend yield of 3.7%. OLD Mut PLC/ADR pays an annual dividend of $0.69 per share and has a dividend yield of 3.2%. Metlife pays out 37.3% of its earnings in the form of a dividend. Metlife has raised its dividend for 5 consecutive years. Metlife is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for Metlife and OLD Mut PLC/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|OLD Mut PLC/ADR||0||0||0||0||N/A|
Metlife presently has a consensus price target of $54.18, suggesting a potential upside of 19.90%. Given Metlife’s higher probable upside, research analysts clearly believe Metlife is more favorable than OLD Mut PLC/ADR.
Metlife beats OLD Mut PLC/ADR on 10 of the 11 factors compared between the two stocks.
MetLife, Inc. engages in the insurance, annuities, employee benefits, and asset management businesses. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short- and long-term disability, individual disability, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and stable value products, including general and separate account guaranteed interest contracts, and private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, tort settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, the company offers automobile, homeowners', and personal excess liability, as well as small business owners' property, liability, and business interruption insurance products. Further, it provides fixed annuities and pension products; medical and credit insurance products; variable, universal, term, endowment, and whole life insurance products; variable, and fixed and indexed-linked annuities; and protection against costs of long-term health care services. MetLife, Inc. has a strategic alliance with Ernst & Young LLP. The company serves individuals, corporations and their employees, and other institutions through independent agents, property and casualty specialists, sales forces, sales teams and relationship managers, and other organizations, as well as through career agency, bancassurance, direct marketing, brokerage, and other third-party distribution and e-commerce channels. MetLife, Inc. was founded in 1863 and is headquartered in New York, New York.
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