Aflac vs MetLife Which Offers More Value?

Aflac and MetLife are two major players in the insurance industry, each offering a range of products and services to customers. When comparing their stocks, investors may consider factors such as financial performance, market share, and growth potential. Aflac has a strong track record of profitability and a focus on supplemental insurance products, while MetLife is a larger, more diversified company with a global presence. Both stocks have their own strengths and weaknesses, making them appealing options for investors seeking exposure to the insurance sector.

Aflac or MetLife?

When comparing Aflac and MetLife, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aflac and MetLife.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aflac has a dividend yield of 1.92%, while MetLife has a dividend yield of 2.62%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aflac reports a 5-year dividend growth of 13.12% year and a payout ratio of 19.97%. On the other hand, MetLife reports a 5-year dividend growth of 4.37% year and a payout ratio of 39.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aflac P/E ratio at 11.09 and MetLife's P/E ratio at 13.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aflac P/B ratio is 2.31 while MetLife's P/B ratio is 2.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aflac has seen a 5-year revenue growth of -0.96%, while MetLife's is 0.35%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aflac's ROE at 21.66% and MetLife's ROE at 15.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $107.05 for Aflac and $81.42 for MetLife. Over the past year, Aflac's prices ranged from $79.31 to $115.50, with a yearly change of 45.63%. MetLife's prices fluctuated between $67.30 and $89.05, with a yearly change of 32.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.