Allied vs Allstate Which Is a Smarter Choice?

Allied and Allstate are two well-known insurance companies that offer a variety of products and services to their customers. While both companies operate in the same industry, there are key differences between their stock performances. Allied has shown steady growth over the years, consistently outperforming the market. On the other hand, Allstate has faced challenges in recent years, with fluctuating stock prices and performance. Investors looking to diversify their portfolios may consider comparing the performance of Allied vs Allstate stocks to make informed investment decisions.

Allied or Allstate?

When comparing Allied and Allstate, 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 Allied and Allstate.

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. Allied has a dividend yield of -%, while Allstate has a dividend yield of 1.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allied reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Allstate reports a 5-year dividend growth of 14.11% year and a payout ratio of 25.45%.

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 Allied P/E ratio at -0.32 and Allstate's P/E ratio at 12.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allied P/B ratio is -0.49 while Allstate's P/B ratio is 2.47.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allied has seen a 5-year revenue growth of 0.00%, while Allstate's is 0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allied's ROE at 261.44% and Allstate's ROE at 22.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.03 for Allied and $194.80 for Allstate. Over the past year, Allied's prices ranged from $0.02 to $0.21, with a yearly change of 876.30%. Allstate's prices fluctuated between $134.17 and $209.88, with a yearly change of 56.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.