Jefferies analyst Suneet Kamath reopened the MetLife buying and selling pair with a Maintain ranking (NYSE: MET) in comparison with the ranking of Prudential Monetary (NYSE: PRU).
Yr-to-date gaps in each valuation and relative efficiency of the 2 shares seem unwarranted primarily based on fundamentals, Kamath stated in a notice to prospects. For the reason that starting of the yr, MetLife (MET) shares fell 24%and Prudential (PRU) decreased by 13%.
Whereas MetLife ( MET ) has extra publicity to CML, notably within the workplace, “we view its stronger extra capital place as a major offset,” the analyst stated. Jeffries additionally expects MetLife to learn extra if sentiment improves to the purpose that financial considerations start to ease.
By 2026, Comat expects segments with a excessive P/E ratio to account for a bigger portion of MET’s earnings (27%) in comparison with operations with a low P/E ratio (9%). And whereas PRU’s enterprise combine will shift in the direction of greater P/E ratios, he estimates they’ll account for simply 13% of PRU 2026 earnings, with low P/E operations accounting for 20%.
He estimates that MetLife ( MET ) shall be in a a lot stronger place relative to extra capital than Prudential ( PRU ).
By way of credit score high quality, the 2 shares look comparable. “At a excessive stage, there appears to be no important distinction between the 2,” Kamat stated.
Evaluate MET vs. PRU metrics right here.
Observe that the SA Quant system charges MetLife ( MET ) and Prudential ( PRU ) as holds.
