AA (OTCMKTS:AATDF – Get Free Report) and MetLife (NYSE:MET – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Earnings & Valuation
This table compares AA and MetLife”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AA | N/A | N/A | N/A | N/A | N/A |
| MetLife | $77.08 billion | 0.64 | $4.43 billion | $4.70 | 16.03 |
Institutional & Insider Ownership
95.0% of MetLife shares are held by institutional investors. 0.4% of MetLife shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares AA and MetLife’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AA | N/A | N/A | N/A |
| MetLife | 4.38% | 21.89% | 0.88% |
Analyst Ratings
This is a breakdown of current ratings for AA and MetLife, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AA | 0 | 0 | 0 | 0 | 0.00 |
| MetLife | 0 | 2 | 9 | 2 | 3.00 |
MetLife has a consensus price target of $95.64, suggesting a potential upside of 26.90%. Given MetLife’s stronger consensus rating and higher probable upside, analysts clearly believe MetLife is more favorable than AA.
Summary
MetLife beats AA on 10 of the 10 factors compared between the two stocks.
About AA
AA plc provides roadside assistance, insurance, and driving services in the United Kingdom. It operates through two segments, Roadside and Insurance. The company offers breakdowns cover for cars, motorcycles, caravans, vans, and towing; car, motorbike, van, and caravan insurance; and loans, savings, mortgage, travel currency card, insurance, and credit card products. It also provides home, content, building, pet, and holiday home insurance products; and travel services. In addition, the company offers driving advisory services, such as child safety, fuel and environment, legal advisory, service and repair, safety, security, and driving cost and other services; car and MOT services; and financial services, such as personal loans, car loans, home improvement loans, debt consolidation loans, wedding loans, loan management, savings, credit cards, and online security services, as well as reinsurance services. It serves fleet and leasing companies. The company was founded in 1905 and is headquartered in Basingstoke, the United Kingdom.
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.
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