Allstate vs Cigna

Both Allstate and Cigna are well-established companies in the insurance industry, but their stocks have different performance trends. Allstate, known for its focus on property and casualty insurance, has shown steady growth and resilience in the market. On the other hand, Cigna, with a strong presence in the health insurance sector, has faced challenges and fluctuations in its stock value. Investors must carefully consider these factors when weighing the potential returns and risks associated with investing in Allstate versus Cigna stocks.

Allstate or Cigna?

When comparing Allstate 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 Allstate 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. Allstate has a dividend yield of 1.89%, while Cigna has a dividend yield of 1.96%. 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 34.74%. On the other hand, Cigna reports a 5-year dividend growth of 161.81% year and a payout ratio of 64.63%.

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 16.78 and Cigna's P/E ratio at 41.89. 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 2.74 while Cigna's P/B ratio is 2.37.

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 Cigna's is 2.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 17.46% and Cigna's ROE at 5.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $191.00 for Allstate and $344.15 for Cigna. Over the past year, Allstate's prices ranged from $121.70 to $195.87, with a yearly change of 60.94%. Cigna's prices fluctuated between $253.95 and $370.83, with a yearly change of 46.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.