Manulife Financial (NYSE:MFC) vs. MetLife (NYSE:MET) Head to Head Review

Manulife Financial (NYSE:MFC) and MetLife (NYSE:MET) are both large-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Manulife Financial and MetLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manulife Financial	10.28%	16.75%	0.75%
MetLife	6.21%	25.71%	0.92%

Risk and Volatility

Manulife Financial has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, MetLife has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares Manulife Financial and MetLife”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manulife Financial	$52.13 billion	1.40	$4.14 billion	$2.53	17.49
MetLife	$77.08 billion	0.84	$3.38 billion	$7.67	13.35

Manulife Financial has higher earnings, but lower revenue than MetLife. MetLife is trading at a lower price-to-earnings ratio than Manulife Financial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

52.6% of Manulife Financial shares are owned by institutional investors. Comparatively, 95.0% of MetLife shares are owned by institutional investors. 0.0% of Manulife Financial shares are owned by insiders. Comparatively, 0.4% of MetLife shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Manulife Financial pays an annual dividend of $1.38 per share and has a dividend yield of 3.1%. MetLife pays an annual dividend of $2.37 per share and has a dividend yield of 2.3%. Manulife Financial pays out 54.5% of its earnings in the form of a dividend. MetLife pays out 30.9% 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. Manulife Financial has raised its dividend for 12 consecutive years and MetLife has raised its dividend for 12 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Manulife Financial and MetLife, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manulife Financial	0	2	3	2	3.00
MetLife	0	1	14	0	2.93

Manulife Financial currently has a consensus price target of $58.75, suggesting a potential upside of 32.74%. MetLife has a consensus price target of $106.62, suggesting a potential upside of 4.10%. Given Manulife Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Manulife Financial is more favorable than MetLife.

Summary

Manulife Financial beats MetLife on 9 of the 17 factors compared between the two stocks.

About Manulife Financial

Manulife Financial Corporation is a Canadian financial services company that provides insurance, wealth management and investment services to individuals and businesses. Its offerings include life and health insurance, group benefits, retirement solutions and investment products. Founded in 1887 as The Manufacturers Life Insurance Company, Manulife serves customers in Canada, the United States and Asia. In the United States, it operates primarily under the John Hancock name. The company also provides asset management services to institutional and retail clients through Manulife Investment Management, which offers investment strategies across a range of asset classes.

About MetLife

MetLife, Inc. is a global financial services company best known for providing insurance, employee benefits and retirement-related products. Its offerings include life, dental and disability insurance, annuities, and products and services designed to help individuals and employers plan for financial protection and retirement. The company serves individuals, businesses and institutions in the United States and international markets, including countries in Latin America, Asia, Europe and the Middle East.