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MET vs. PUK: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Insurance - Multi line stocks have likely encountered both MetLife (MET - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, MetLife has 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 8.10, while PUK has a forward P/E of 11.60. We also note that MET has a PEG ratio of 0.62. 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. PUK currently has a PEG ratio of 1.29.
Another notable valuation metric for MET is its P/B ratio of 1.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PUK has a P/B of 1.73.
Based on these metrics and many more, MET holds a Value grade of A, while PUK has a Value grade of D.
MET has seen stronger estimate revision activity and sports more attractive valuation metrics than PUK, so it seems like value investors will conclude that MET is the superior option right now.
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MET vs. PUK: Which Stock Should Value Investors Buy Now?
Investors with an interest in Insurance - Multi line stocks have likely encountered both MetLife (MET - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, MetLife has 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 8.10, while PUK has a forward P/E of 11.60. We also note that MET has a PEG ratio of 0.62. 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. PUK currently has a PEG ratio of 1.29.
Another notable valuation metric for MET is its P/B ratio of 1.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PUK has a P/B of 1.73.
Based on these metrics and many more, MET holds a Value grade of A, while PUK has a Value grade of D.
MET has seen stronger estimate revision activity and sports more attractive valuation metrics than PUK, so it seems like value investors will conclude that MET is the superior option right now.