Voya Financial (VOYA) & MetLife (MET) Critical Analysis
Voya Financial (NYSE: VOYA) and MetLife (NYSE:MET) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Voya Financial pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. MetLife pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. Voya Financial pays out -1.0% of its earnings in the form of a dividend. MetLife pays out 1,778.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Voya Financial has raised its dividend for 4 consecutive years.
Valuation & Earnings
This table compares Voya Financial and MetLife’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Voya Financial||$9.88 billion||0.66||-$508.80 million||($3.83)||-9.45|
|MetLife||$63.21 billion||0.79||$817.50 million||$0.09||520.17|
MetLife has higher revenue and earnings than Voya Financial. Voya Financial is trading at a lower price-to-earnings ratio than MetLife, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Voya Financial has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, MetLife has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
This table compares Voya Financial and MetLife’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Voya Financial and MetLife, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Voya Financial presently has a consensus price target of $46.11, suggesting a potential upside of 27.45%. MetLife has a consensus price target of $58.89, suggesting a potential upside of 25.81%. Given Voya Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Voya Financial is more favorable than MetLife.
Institutional & Insider Ownership
97.6% of Voya Financial shares are owned by institutional investors. Comparatively, 74.2% of MetLife shares are owned by institutional investors. 0.2% of Voya Financial shares are owned by company insiders. Comparatively, 0.3% of MetLife shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
MetLife beats Voya Financial on 9 of the 15 factors compared between the two stocks.
Voya Financial Company Profile
Voya Financial, Inc. is a retirement, investment and insurance company. The Company operates through five segments: Retirement, Investment Management, Annuities, Individual Life and Employee Benefits. The Retirement segment is a provider of retirement services and products in the United States. The Investment Management segment offers domestic and international fixed income, equity, multi-asset and alternatives products and solutions. The Annuities segment provides fixed and indexed annuities, tax-qualified mutual fund custodial and other investment-only products and payout annuities for pre-retirement wealth accumulation and post-retirement income management sold through multiple channels. The Individual Life segment provides wealth protection and transfer opportunities through universal and variable products. The Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses.
MetLife Company Profile
MetLife, Inc. is a provider of life insurance, annuities, employee benefits and asset management. The Company’s segments include U.S.; Asia; Latin America; Europe, the Middle East and Africa (EMEA); MetLife Holdings, and Corporate & Other. Its U.S. segment is organized into Group Benefits, Retirement and Income Solutions and Property & Casualty businesses. Its Asia segment offers products, including life insurance; accident and health insurance, and retirement and savings products. Latin America offers products, including life insurance, and retirement and savings products. Life insurance includes universal, variable and term life products. EMEA offers products, including life insurance, accident and health insurance, retirement and savings products, and credit insurance.
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