Allstate vs Amica Which Is Superior?

Allstate Corporation and Amica Mutual Insurance Company are both reputable insurance companies in the United States. While Allstate is a publicly traded company on the New York Stock Exchange (NYSE), Amica is a mutual insurance company owned by its policyholders. Both companies have a strong financial standing and solid track record of performance. Investors looking to invest in the insurance sector may consider comparing the stocks of Allstate and Amica to make an informed decision.

Allstate or Amica?

When comparing Allstate and Amica, 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 Allstate and Amica.

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. Allstate has a dividend yield of 1.88%, while Amica has a dividend yield of 4.48%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Allstate reports a 5-year dividend growth of 14.11% year and a payout ratio of 25.45%. On the other hand, Amica reports a 5-year dividend growth of 0.00% year and a payout ratio of -240.00%.

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 Allstate P/E ratio at 12.28 and Amica's P/E ratio at -53.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Allstate P/B ratio is 2.49 while Amica's P/B ratio is 0.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Allstate has seen a 5-year revenue growth of 0.90%, while Amica's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and Amica's ROE at -0.76%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $193.63 for Allstate and zł55.20 for Amica. Over the past year, Allstate's prices ranged from $134.17 to $209.88, with a yearly change of 56.43%. Amica's prices fluctuated between zł54.00 and zł86.00, with a yearly change of 59.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.