Contrasting Global Indemnity Group (NASDAQ:GBLI) and MetLife (NYSE:MET)

MetLife (NYSE:MET) and Global Indemnity Group (NASDAQ:GBLI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MetLife and Global Indemnity Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MetLife	0	1	11	0	2.92
Global Indemnity Group	0	1	0	0	2.00

MetLife currently has a consensus target price of $102.77, suggesting a potential upside of 5.76%. Given MetLife’s stronger consensus rating and higher possible upside, equities analysts plainly believe MetLife is more favorable than Global Indemnity Group.

Profitability

This table compares MetLife and Global Indemnity Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MetLife	4.57%	23.39%	0.89%
Global Indemnity Group	7.50%	5.56%	2.28%

Dividends

MetLife pays an annual dividend of $2.37 per share and has a dividend yield of 2.4%. Global Indemnity Group pays an annual dividend of $1.40 per share and has a dividend yield of 4.8%. MetLife pays out 45.4% of its earnings in the form of a dividend. Global Indemnity Group pays out 59.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MetLife has raised its dividend for 12 consecutive years and Global Indemnity Group has raised its dividend for 1 consecutive years.

Volatility & Risk

MetLife has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Global Indemnity Group has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

95.0% of MetLife shares are owned by institutional investors. Comparatively, 37.4% of Global Indemnity Group shares are owned by institutional investors. 0.4% of MetLife shares are owned by company insiders. Comparatively, 47.1% of Global Indemnity Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares MetLife and Global Indemnity Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MetLife	$77.08 billion	0.81	$3.38 billion	$5.22	18.62
Global Indemnity Group	$450.10 million	0.95	$25.33 million	$2.35	12.39

MetLife has higher revenue and earnings than Global Indemnity Group. Global Indemnity Group is trading at a lower price-to-earnings ratio than MetLife, indicating that it is currently the more affordable of the two stocks.

Summary

MetLife beats Global Indemnity Group on 12 of the 17 factors compared between the two stocks.

About MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; 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, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured 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, it provides fixed, indexed-linked, and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was incorporated in 1999 and is based in New York, New York.

About Global Indemnity Group

Global Indemnity Group, LLC, through its subsidiaries, provides specialty property and casualty insurance, and reinsurance products worldwide. It operates in two segments, Penn-America and Non-Core Operations. The company distributes property and general liability products for small commercial businesses through a network of wholesale general agents; and property and general liability niche products through program administrators with specific binding authority. It also provides third-party treaty reinsurance for casualty insurance and reinsurance companies through brokers/intermediaries. In addition, the company offers property and general liability products distributed using company administered systems, and includes collectibles, digital direct-to-consumer insurance coverage for owners of collections; and VacantExpress, insurance coverage for owners of properties under construction, renovation, vacant, or rented, distributed through wholesale general agents and retail agents. Global Indemnity Group, LLC was founded in 2003 and is headquartered in Bala Cynwyd, Pennsylvania.