Head to Head Contrast: MetLife (NYSE:MET) vs. Equitable (NYSE:EQH)

Equitable (NYSE:EQH) and MetLife (NYSE:MET) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Equitable and MetLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable	-7.26%	232.29%	0.58%
MetLife	4.66%	22.60%	0.88%

Volatility and Risk

Equitable has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, MetLife has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Equitable and MetLife”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable	$11.66 billion	1.12	-$1.38 billion	($2.84)	-16.90
MetLife	$77.08 billion	0.79	$3.38 billion	$5.16	18.35

MetLife has higher revenue and earnings than Equitable. Equitable is trading at a lower price-to-earnings ratio than MetLife, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Equitable and MetLife, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable	0	3	10	1	2.86
MetLife	0	2	11	1	2.93

Equitable currently has a consensus price target of $60.08, suggesting a potential upside of 25.19%. MetLife has a consensus price target of $100.50, suggesting a potential upside of 6.16%. Given Equitable’s higher probable upside, analysts clearly believe Equitable is more favorable than MetLife.

Institutional & Insider Ownership

92.7% of Equitable shares are owned by institutional investors. Comparatively, 95.0% of MetLife shares are owned by institutional investors. 1.1% of Equitable shares are owned by company insiders. Comparatively, 0.4% of MetLife shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Equitable pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. MetLife pays an annual dividend of $2.37 per share and has a dividend yield of 2.5%. Equitable pays out -42.3% of its earnings in the form of a dividend. MetLife pays out 45.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Equitable has raised its dividend for 2 consecutive years and MetLife has raised its dividend for 12 consecutive years. MetLife is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

MetLife beats Equitable on 11 of the 17 factors compared between the two stocks.

About Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

About MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; 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, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured 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, it provides fixed, indexed-linked, and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was incorporated in 1999 and is based in New York, New York.