Analyzing Fidelis Insurance (NYSE:FIHL) & MetLife (NYSE:MET)

Fidelis Insurance (NYSE:FIHL) and MetLife (NYSE:MET) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Risk & Volatility

Fidelis Insurance has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, MetLife has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fidelis Insurance and MetLife”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fidelis Insurance	$2.42 billion	0.84	$113.30 million	($0.41)	-44.88
MetLife	$72.22 billion	0.73	$4.43 billion	$5.90	13.46

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

Dividends

Fidelis Insurance pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. MetLife pays an annual dividend of $2.27 per share and has a dividend yield of 2.9%. Fidelis Insurance pays out -146.3% of its earnings in the form of a dividend. MetLife pays out 38.5% 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. MetLife has increased its dividend for 12 consecutive years. Fidelis Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

82.0% of Fidelis Insurance shares are held by institutional investors. Comparatively, 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 is poised for long-term growth.

Profitability

This table compares Fidelis Insurance and MetLife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fidelis Insurance	-1.70%	-1.81%	-0.36%
MetLife	5.83%	19.88%	0.82%

Analyst Ratings

This is a summary of current ratings and price targets for Fidelis Insurance and MetLife, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fidelis Insurance	1	4	4	0	2.33
MetLife	0	2	10	1	2.92

Fidelis Insurance presently has a consensus target price of $20.71, indicating a potential upside of 12.58%. MetLife has a consensus target price of $95.18, indicating a potential upside of 19.84%. Given MetLife’s stronger consensus rating and higher possible upside, analysts plainly believe MetLife is more favorable than Fidelis Insurance.

Summary

MetLife beats Fidelis Insurance on 15 of the 18 factors compared between the two stocks.

About Fidelis Insurance

Fidelis Insurance Holdings Limited, a specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom. It operates in three segments: Specialty, Reinsurance, and Bespoke segments. The Specialty segment offers aviation and aerospace, energy, marine, property direct and facultative, and other specialty risk solutions. The Reinsurance segment provides property, retrocession, and whole account reinsurance solutions. The Bespoke segment offers customized risk solutions for clients that include credit and political risk, as well as other risk transfer opportunities, including political violence and terrorism, limited cyber reinsurance, tax liabilities, title, transactional liabilities, and other bespoke solutions. Fidelis Insurance Holdings Limited was incorporated in 2014 and is headquartered in Pembroke, Bermuda.

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.