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MET or PUK: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Insurance - Multi line sector might want to consider either MetLife (MET - Free Report) or Prudential (PUK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, MetLife is sporting a Zacks Rank of #2 (Buy), while Prudential has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MET has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MET currently has a forward P/E ratio of 7.83, while PUK has a forward P/E of 18.46. We also note that MET has a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PUK currently has a PEG ratio of 2.05.
Another notable valuation metric for MET is its P/B ratio of 0.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PUK has a P/B of 3.19.
These metrics, and several others, help MET earn a Value grade of A, while PUK has been given a Value grade of C.
MET stands above PUK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MET is the superior value option right now.
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MET or PUK: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Insurance - Multi line sector might want to consider either MetLife (MET - Free Report) or Prudential (PUK - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, MetLife is sporting a Zacks Rank of #2 (Buy), while Prudential has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MET has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MET currently has a forward P/E ratio of 7.83, while PUK has a forward P/E of 18.46. We also note that MET has a PEG ratio of 1.05. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PUK currently has a PEG ratio of 2.05.
Another notable valuation metric for MET is its P/B ratio of 0.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PUK has a P/B of 3.19.
These metrics, and several others, help MET earn a Value grade of A, while PUK has been given a Value grade of C.
MET stands above PUK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MET is the superior value option right now.