Allianz vs Cigna Which Should You Buy?

Allianz SE and Cigna Corporation are two leading companies in the insurance and financial services industry. Allianz, a German multinational company, is known for its diversified product portfolio and strong global presence. Cigna, on the other hand, is a US-based health services organization that offers a range of insurance and health-related services. Both companies have experienced growth and success in recent years, making their stocks attractive options for investors looking to capitalize on the stability and potential returns of the insurance sector.

Allianz or Cigna?

When comparing Allianz and Cigna, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Allianz and Cigna.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Allianz has a dividend yield of 5.44%, while Cigna has a dividend yield of 1.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allianz reports a 5-year dividend growth of 6.96% year and a payout ratio of 0.00%. On the other hand, Cigna reports a 5-year dividend growth of 161.81% year and a payout ratio of 50.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Allianz P/E ratio at 1.21 and Cigna's P/E ratio at 28.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allianz P/B ratio is 0.20 while Cigna's P/B ratio is 2.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allianz has seen a 5-year revenue growth of 9.80%, while Cigna's is 2.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allianz's ROE at 17.69% and Cigna's ROE at 7.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.27 for Allianz and $310.59 for Cigna. Over the past year, Allianz's prices ranged from $26.00 to $33.19, with a yearly change of 27.65%. Cigna's prices fluctuated between $288.88 and $370.83, with a yearly change of 28.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.