Allstate vs Old Mutual

Allstate and Old Mutual are two well-known insurance companies with a strong presence in the financial services industry. Allstate is a leading provider of property and casualty insurance in the United States, while Old Mutual is a prominent financial services group based in South Africa. Both companies have seen fluctuations in their stock prices over recent years, with investors closely monitoring their financial performance and strategic initiatives. This analysis will compare the stock performance of Allstate and Old Mutual, highlighting key factors impacting their respective valuations.

Allstate or Old Mutual?

When comparing Allstate and Old Mutual, 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 Old Mutual.

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 Old Mutual has a dividend yield of 5.16%. 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, Old Mutual reports a 5-year dividend growth of 0.00% year and a payout ratio of 52.37%.

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 Old Mutual's P/E ratio at 9.13. 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 Old Mutual's P/B ratio is 0.06.

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 Old Mutual's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 17.46% and Old Mutual's ROE at 0.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $191.00 for Allstate and $0.72 for Old Mutual. Over the past year, Allstate's prices ranged from $121.70 to $195.87, with a yearly change of 60.94%. Old Mutual's prices fluctuated between $0.53 and $0.82, with a yearly change of 54.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.