Critical Review: MetLife (MET) and Brighthouse Financial (BHF)

MetLife (NYSE: MET) and Brighthouse Financial (NASDAQ:BHF) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
MetLife 5.69% 8.59% 0.66%
Brighthouse Financial N/A N/A N/A

Earnings & Valuation

This table compares MetLife and Brighthouse Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MetLife $62.09 billion 0.79 $4.01 billion $4.50 10.58
Brighthouse Financial $6.84 billion 0.90 -$378.00 million N/A N/A

MetLife has higher revenue and earnings than Brighthouse Financial.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MetLife 1 9 8 0 2.39
Brighthouse Financial 2 13 2 0 2.00

MetLife presently has a consensus price target of $56.67, indicating a potential upside of 19.02%. Brighthouse Financial has a consensus price target of $64.93, indicating a potential upside of 26.30%. Given Brighthouse Financial’s higher possible upside, analysts plainly believe Brighthouse Financial is more favorable than MetLife.

Institutional & Insider Ownership

77.7% of MetLife shares are held by institutional investors. Comparatively, 84.8% of Brighthouse Financial shares are held by institutional investors. 0.3% of MetLife shares are held by company insiders. Comparatively, 0.0% of Brighthouse Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

MetLife pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. Brighthouse Financial does not pay a dividend. MetLife pays out 35.6% of its earnings in the form of a dividend. MetLife has increased its dividend for 5 consecutive years.

Summary

MetLife beats Brighthouse Financial on 10 of the 14 factors compared between the two stocks.

About MetLife

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.

About Brighthouse Financial

Brighthouse Financial, Inc. provides a range of annuity and life insurance products in the United States. The company operates through three segments: Annuities, Life, and Run-off. It offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security; and term, whole, universal, and variable life insurance products for policyholders' needs for financial security and protected wealth transfer. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.

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