Principal Financial Group (PFG) vs. MetLife (MET) Head-To-Head Analysis
Principal Financial Group (NYSE: PFG) and MetLife (NYSE:MET) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.
Institutional & Insider Ownership
68.2% of Principal Financial Group shares are owned by institutional investors. Comparatively, 74.3% of MetLife shares are owned by institutional investors. 1.5% of Principal Financial Group shares are owned by insiders. Comparatively, 0.3% of MetLife shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Principal Financial Group and MetLife’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Principal Financial Group||10.15%||13.57%||0.63%|
Valuation & Earnings
This table compares Principal Financial Group and MetLife’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Principal Financial Group||$12.56 billion||1.57||$1.88 billion||$4.40||15.48|
|MetLife||$63.21 billion||0.91||$817.50 million||$0.09||603.29|
Principal Financial Group has higher revenue, but lower earnings than MetLife. Principal Financial Group is trading at a lower price-to-earnings ratio than MetLife, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Principal Financial Group and MetLife, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Principal Financial Group||1||6||2||0||2.11|
Principal Financial Group presently has a consensus price target of $66.78, indicating a potential downside of 1.94%. MetLife has a consensus price target of $58.45, indicating a potential upside of 7.66%. Given MetLife’s stronger consensus rating and higher probable upside, analysts plainly believe MetLife is more favorable than Principal Financial Group.
Volatility & Risk
Principal Financial Group has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, MetLife has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Principal Financial Group pays an annual dividend of $1.88 per share and has a dividend yield of 2.8%. MetLife pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Principal Financial Group pays out 42.7% 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. Principal Financial Group has increased its dividend for 4 consecutive years and MetLife has increased its dividend for 5 consecutive years. MetLife is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
MetLife beats Principal Financial Group on 10 of the 18 factors compared between the two stocks.
Principal Financial Group Company Profile
Principal Financial Group, Inc. is an investment management company. The Company offers a range of financial products and services, including retirement, asset management and insurance. Its segments include Retirement and Income Solutions; Principal Global Investors, Principal International; U.S. Insurance Solutions, and Corporate. The Company offers a portfolio of products and services for retirement savings and retirement income. The Company’s Principal Global Investors segment manages assets for investors around the world. The Company offers pension accumulation products and services, mutual funds, asset management, income annuities and life insurance accumulation products. The Company’s U.S. Insurance Solutions segment provides group and individual insurance solutions. It focuses on small and medium-sized businesses, providing a range of retirement and employee benefit solutions, and individual insurance solutions to meet the needs of the business owners and their employees.
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.
Receive News & Ratings for Principal Financial Group Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Principal Financial Group Inc and related companies with MarketBeat.com's FREE daily email newsletter.