Allstate vs MetLife Which Performs Better?

Allstate and MetLife are both major players in the insurance industry, offering a range of products and services to customers. As publicly traded companies, their stocks are subject to market fluctuations and investor sentiment. Both companies have strong financial performance and solid track records, making them attractive options for investors looking to add insurance stocks to their portfolios. However, there are differences in their business models and strategies that may impact their stock performance in the long term.

Allstate or MetLife?

When comparing Allstate 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 Allstate 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. Allstate has a dividend yield of 1.81%, while MetLife has a dividend yield of 2.53%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allstate reports a 5-year dividend growth of 14.11% year and a payout ratio of 25.45%. On the other hand, MetLife reports a 5-year dividend growth of 4.41% year and a payout ratio of 46.15%.

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 Allstate P/E ratio at 12.74 and MetLife's P/E ratio at 15.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allstate P/B ratio is 2.58 while MetLife's P/B ratio is 1.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allstate has seen a 5-year revenue growth of 0.90%, while MetLife's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and MetLife's ROE at 12.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $201.53 for Allstate and $85.03 for MetLife. Over the past year, Allstate's prices ranged from $134.17 to $209.88, with a yearly change of 56.43%. MetLife's prices fluctuated between $63.37 and $89.05, with a yearly change of 40.52%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.