Allstate vs Unum Which Is More Attractive?

Allstate and Unum are two well-known insurance companies that offer a range of products and services to consumers. Both companies have a strong presence in the insurance industry and have experienced growth and success over the years. Allstate is known for its auto and home insurance policies, while Unum specializes in disability and supplemental health insurance. Investors looking to compare these two companies should consider their financial performance, market position, and potential for future growth.

Allstate or Unum?

When comparing Allstate and Unum, 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 Unum.

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 1.86%, while Unum has a dividend yield of 2.75%. 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, Unum reports a 5-year dividend growth of 7.24% year and a payout ratio of 16.51%.

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 12.25 and Unum's P/E ratio at 7.65. 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 2.48 while Unum's P/B ratio is 1.23.

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 Unum's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and Unum's ROE at 17.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $194.96 for Allstate and $71.91 for Unum. Over the past year, Allstate's prices ranged from $131.65 to $201.00, with a yearly change of 52.68%. Unum's prices fluctuated between $41.86 and $72.96, with a yearly change of 74.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.