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MET or BBSEY: 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 BB Seguridade Participacoes SA (BBSEY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

MetLife and BB Seguridade Participacoes SA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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. However, value investors will care about much more than just this.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

MET currently has a forward P/E ratio of 6.99, while BBSEY has a forward P/E of 8.70. We also note that MET has a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BBSEY currently has a PEG ratio of 0.67.

Another notable valuation metric for MET is its P/B ratio of 1.66. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BBSEY has a P/B of 7.82.

Based on these metrics and many more, MET holds a Value grade of A, while BBSEY has a Value grade of D.

MET stands above BBSEY 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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