Allstate vs Voya Financial Which Outperforms?

Allstate Corporation and Voya Financial are both prominent players in the insurance and financial services industry. Allstate is known for its wide range of insurance products and strong financial stability, while Voya Financial offers retirement, investment, and insurance solutions to individuals and institutions. Both companies have experienced fluctuations in their stock prices over the years, influenced by market trends, economic conditions, and industry competition. Investors looking to add insurance and financial stocks to their portfolio may find both Allstate and Voya Financial attractive options to consider.

Allstate or Voya Financial?

When comparing Allstate and Voya Financial, 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 Voya Financial.

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 Voya Financial has a dividend yield of 3.07%. 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, Voya Financial reports a 5-year dividend growth of 97.44% year and a payout ratio of 31.65%.

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 12.32 and Voya Financial's P/E ratio at 11.53. 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 Voya Financial's P/B ratio is 1.69.

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 Voya Financial's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Allstate's ROE at 22.29% and Voya Financial's ROE at 16.18%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $196.02 for Allstate and $80.73 for Voya Financial. Over the past year, Allstate's prices ranged from $132.74 to $201.00, with a yearly change of 51.42%. Voya Financial's prices fluctuated between $63.11 and $84.30, with a yearly change of 33.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.