Chevron, MetLife: Ratings Changes

BOSTON (TheStreet) -- Here are three relevant downgrades from TheStreet's stock-model.

3.

The model downgraded life and health insurer

MetLife

(MET) - Get Report

to "sell."

Numbers

: Fourth-quarter profit fell 68% to $320 million, or 35 cents a share, as revenue dropped 12% to $12 billion. MetLife's operating margin narrowed from 13% to 4.1%. Its balance sheet contains $28 billion of cash and $33 billion of debt. During the past three years, revenue has fallen 5.2% annually.

Stock

: MetLife has tripled in the past year, beating U.S. indices. The stock sells for a price-to-projected-earnings ratio of 8.3, a 33% discount to the peer-group average. It's also cheap based on book value, sales and cash flow. The shares offer a 1.8% dividend yield with an excessive payout ratio of 211%.

2.

The model downgraded integrated oil and gas company

Occidental Petroleum

(OXY) - Get Report

to "hold."

Numbers

: Fourth-quarter profit doubled to $938 million, or $1.16, as revenue grew 13% to $4.5 billion. The operating margin expanded from 17% to 34%. Occidental holds $1.3 billion of cash and $2.8 billion of debt. During the past three years, net income has fallen 11% annually, on average.

Stock

: Occidental Petroleum has gained 62% in the past year, slightly more than the

Dow Jones Industrial Average

. The stock trades at a price-to-projected-earnings ratio of 11, a 21% discount to the industry average. It's expensive based on trailing earnings and cash flow. The shares offer a 1.6% dividend yield with a payout ratio of 37%.

1.

The model downgraded oil and gas seller

Chevron

(CVX) - Get Report

to "hold."

Numbers

: Fourth-quarter profit decreased 37% to $3.1 billion, or $1.53, as revenue gained 11% to $46 billion. Chevron's operating margin tightened from 14% to 10%. Its balance sheet stores $8.8 billion of cash and $11 billion of debt. Net income has dropped 15%, on average, during the past three years.

Stock

: Chevron has appreciated 27% in the past year, lagging behind benchmarks. The stock sells for a price-to-projected-earnings ratio of 7.6, a 45% discount to its peer-group average. It's also cheap based on book value, sales and cash flow. The shares offer a 3.7% dividend yield with a payout ratio of 52%.

-- Reported by Jake Lynch in Boston.