Allstate vs Nationwide Building Society Which Outperforms?

Allstate Corporation and Nationwide Building Society are two leading companies in the insurance and financial services sector. Both companies have a strong presence in the market and have a history of delivering consistent returns to their shareholders. Allstate is known for its diverse insurance offerings, while Nationwide is primarily focused on banking and financial services. Investors looking to diversify their portfolio may consider investing in both companies to benefit from the stability and growth potential they offer.

Allstate or Nationwide Building Society?

When comparing Allstate and Nationwide Building Society, 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 Nationwide Building Society.

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 1.85%, while Nationwide Building Society has a dividend yield of -%. 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, Nationwide Building Society reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.46%.

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 12.36 and Nationwide Building Society's P/E ratio at 0.93. 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 2.50 while Nationwide Building Society's P/B ratio is 0.07.

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 Nationwide Building Society's is 4.41%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and Nationwide Building Society's ROE at 8.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.17 for Allstate and £131.69 for Nationwide Building Society. Over the past year, Allstate's prices ranged from $129.17 to $201.00, with a yearly change of 55.61%. Nationwide Building Society's prices fluctuated between £113.00 and £137.00, with a yearly change of 21.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.