MET vs PFG: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
MET is the larger of the two ($61.85B market cap): the incumbent the market prices for continued execution (8.75x forward earnings, beta 0.78). PFG is the smaller challenger ($24.34B), actually pricier on forward earnings (11.00x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
MET vs PFG: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MET | PFG | What it tells you |
|---|---|---|---|
| Market cap | $61.85B | $24.34B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 8.75 | 11.00 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 18.59 | 16.20 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.78 | 0.89 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 95% of range | 97% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.27 | 2.01 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: MET is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MET and PFG affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MET and PFG share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MET and PFG exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does MetLife (MET) do?
MetLife, Inc. is one of the world's largest providers of life insurance, employee benefits, annuities, and asset management, serving individuals and institutional clients across the United States, Asia, Latin America, Europe, the Middle East, and Africa. It reports through several segments, including Group Benefits (group life, dental, disability, and other workplace coverage), Retirement and Income Solutions (annuities, pension risk transfers, structured settlements, and stable value products), Asia, Latin America, EMEA, and MetLife Holdings, its book of legacy US business. The core model is classic insurance: collect premiums, pay claims and benefits over time, and invest the difference (the float) in a large fixed-income-heavy portfolio, earning a spread. That makes MetLife both an underwriter and a giant investor, so its profitability depends on disciplined pricing, mortality and morbidity trends, and the returns it earns on invested assets.
What does Principal Financial Group (PFG) do?
Principal Financial Group, Inc. (Nasdaq: PFG) is a global financial services company headquartered in Des Moines, Iowa, that serves individuals and businesses across retirement, investment management, and insurance. Its business is organized around a few core engines: Retirement and Income Solutions (workplace retirement plans, annuities, and income products in the United States), Global Asset Management (the Principal Global Investors and Principal International operations that manage money for institutional and retail clients), and U.S. Insurance Solutions (specialty benefits like dental, vision, disability, and life insurance, plus individual life). The company earns money from fees on the assets it manages and administers, spread income on its insurance and annuity products, and insurance premiums, so a large share of its revenue is tied to the level of assets under management, which reached about $770 billion in early 2026.
MET vs PFG: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MET drivers: Group Benefits and workplace demand; Retirement and Income Solutions.
- PFG drivers: Retirement and asset management fee growth; International pension franchise.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: MetLife's biggest risks come from the same levers that drive its profits. For PFG, because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income.
MET or PFG: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick MET if you believe its drivers more; PFG if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the MET and PFG guides.
MET vs PFG: the full fundamentals
MET. These are qualitative and approximate as of the asOf date and not precise real-time figures. Insurer results are heavily affected by interest rates, credit markets, and actuarial assumption changes, so reported numbers can differ sharply from adjusted ones. Confirm live revenue, EPS, dividend, and valuation before acting.
PFG. Principal trades at a modest earnings multiple typical of diversified financials, with a roughly 3% dividend yield and a mid-teens operating return on equity. GAAP EPS fell in 2025 on items affecting net income, but non-GAAP operating EPS grew (up about 14% year over year in Q1 2026). Valuation and results are closely tied to the level of equity markets and asset flows, so figures move with market conditions.
Headline figures (approximate, Jul 2026): MET shows revenue trend Full-year 2025 revenue was about $77.1 billion, up mid-single digits year over year; Q1 2026 revenue was roughly $19 billion, profitability Adjusted EPS has been rising (Q1 2026 adjusted EPS ~$2.42, up ~23% year over year), while reported net income can swing on investment and actuarial items, balance sheet / leverage Large, mostly fixed-income investment portfolio backing long-duration liabilities; capital-intensive and regulated, with statutory capital and ratings constraints, capital returns Raised the quarterly dividend ~4.4% to $0.5925 per share in 2026 and extended buybacks; targets $25 billion-plus of free cash flow over its plan; PFG shows revenue (fy2025) ~$15.6 billion, net income (fy2025, gaap) ~$1.19 billion, diluted eps (fy2025, gaap) ~$5.32 (down from ~$6.77 in 2024), assets under management (q1 2026) ~$770 billion.
The bottom line: MET vs PFG
MET and PFG are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MET and PFG exposure against your real portfolio. It is not an investment adviser.
Wondering how MET or PFG fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in MetLife with AI
Connect the broker you already use and ask Walnut's AI how MET fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MET and PFG?
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MetLife, Inc. Principal Financial Group, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MET or PFG the better stock?
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Neither is universally better. MET is the larger incumbent; PFG is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MET or PFG?
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On forward P/E (as of August 2026), MET trades at 8.75x and PFG at 11.00x, so MET is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MET and PFG?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MET vs PFG?
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MET: MetLife's biggest risks come from the same levers that drive its profits. As a large investor of policyholder float, it is exposed to interest-rate swings, credit spreads, and equity-market moves: sharp rate changes affect both investment income and the value of long-duration liabilities, and a credit downturn could pressure its bond and commercial-real-estate holdings. Insurance-specific risks include mortality, morbidity, and longevity assumptions proving wrong, plus reserve adequacy on long-tail liabilities like pensions and annuities. Its international earnings add currency and local-regulatory risk. Reported net income can be lumpy because of actuarial assumption updates, derivative marks, and market-related items, which is why the company emphasizes adjusted earnings. Insurance is also heavily regulated and capital-intensive, so statutory capital requirements and rating-agency views constrain how much can be returned to shareholders. PFG: Because a large share of Principal's revenue comes from fees on managed assets, the stock is sensitive to equity and bond market declines, which shrink assets under management and fee income. Net outflows, where clients withdraw more than they add, can offset market gains and pressure the asset management and retirement segments. Interest rates cut both ways: they affect spread income on annuities and insurance products, the value of the investment portfolio, and demand for retirement products. The insurance operations carry underwriting, mortality, morbidity, and reserve risks, and adverse claims experience or reserve strengthening can depress earnings, as reflected in the gap between GAAP net income and operating earnings in 2025. International operations add currency and local regulatory and political risk, and the whole business faces intense competition and fee pressure from much larger asset managers and insurers.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MET or PFG; figures are approximate and dated (as of August 2026). Verify current data before investing.