Unum vs MetLife Which Outperforms?

Unum Group and MetLife are two prominent companies in the insurance industry, each offering a range of products and services to their customers. Both companies have a strong track record of financial stability and providing reliable coverage to policyholders. Investors looking to add insurance stocks to their portfolio may consider comparing Unum and MetLife to assess their performance, growth potential, and overall value. Understanding the key differences between these two companies can help investors make informed decisions about their investment strategies.

Unum or MetLife?

When comparing Unum 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 Unum 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. Unum has a dividend yield of 2.83%, while MetLife has a dividend yield of 3.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Unum reports a 5-year dividend growth of 7.24% year and a payout ratio of 16.51%. 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 Unum P/E ratio at 7.43 and MetLife's P/E ratio at 15.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Unum P/B ratio is 1.20 while MetLife's P/B ratio is 1.86.

Growth Investors:

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

Retail Investors:

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