MetLife vs Unum Which Is More Promising?

MetLife and Unum are two prominent companies in the insurance industry, each offering a range of financial services and products. Both stocks are part of the financial sector, making them subject to similar economic trends and market conditions. However, there are key differences in their business models and target markets that impact their performance. Investors should consider factors such as market share, revenue growth, profitability, and dividends when deciding between MetLife and Unum stocks.

MetLife or Unum?

When comparing MetLife and Unum, 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 MetLife and Unum.

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. MetLife has a dividend yield of 3.3%, while Unum has a dividend yield of 2.83%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. MetLife reports a 5-year dividend growth of 4.41% year and a payout ratio of 46.15%. On the other hand, Unum reports a 5-year dividend growth of 7.24% year and a payout ratio of 16.51%.

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 MetLife P/E ratio at 15.30 and Unum's P/E ratio at 7.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. MetLife P/B ratio is 1.86 while Unum's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, MetLife has seen a 5-year revenue growth of 0.24%, while Unum's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with MetLife's ROE at 12.90% and Unum's ROE at 17.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $81.57 for MetLife and $70.10 for Unum. Over the past year, MetLife's prices ranged from $60.26 to $86.95, with a yearly change of 44.29%. Unum's prices fluctuated between $41.86 and $71.42, with a yearly change of 70.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.