Critical Comparison: Voya Financial (VOYA) and MetLife (MET)

Voya Financial (NYSE: VOYA) and MetLife (NYSE:MET) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

Voya Financial has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, MetLife has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of Voya Financial shares are held by institutional investors. Comparatively, 74.2% of MetLife shares are held by institutional investors. 0.2% of Voya Financial shares are held by insiders. Comparatively, 0.3% of MetLife shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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
Voya Financial -7.67% 3.68% 0.25%
MetLife 0.30% 8.51% 0.65%

Dividends

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.

Analyst Recommendations

This is a summary of recent recommendations for Voya Financial and MetLife, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Voya Financial 1 1 8 0 2.70
MetLife 1 4 8 0 2.54

Voya Financial presently has a consensus price target of $46.11, indicating a potential upside of 26.26%. MetLife has a consensus price target of $58.89, indicating a potential upside of 24.93%. Given Voya Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Voya Financial is more favorable than MetLife.

Valuation and 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) -9.54
MetLife $63.21 billion 0.79 $817.50 million $0.09 523.84

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.

Summary

MetLife beats Voya Financial on 9 of the 16 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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