Amara vs Cigna Which Is More Lucrative?

Amara and Cigna are two well-known companies in the healthcare industry, both offering a range of services and products to consumers. As publicly traded companies, their stock performance is closely monitored by investors and analysts alike. Amara is known for its innovative approach to healthcare technology, while Cigna has a long-standing reputation for providing comprehensive health insurance coverage. Understanding the differences in their business models, market positioning, and financial performance can help investors make informed decisions when considering investing in either Amara or Cigna stocks.

Amara or Cigna?

When comparing Amara 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 Amara 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. Amara has a dividend yield of 1.77%, while Cigna has a dividend yield of 1.61%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amara reports a 5-year dividend growth of -24.21% year and a payout ratio of 80.51%. On the other hand, Cigna reports a 5-year dividend growth of 161.81% year and a payout ratio of 50.71%.

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 Amara P/E ratio at 90.97 and Cigna's P/E ratio at 30.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amara P/B ratio is 0.85 while Cigna's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amara has seen a 5-year revenue growth of 0.10%, while Cigna's is 2.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amara's ROE at 0.92% and Cigna's ROE at 7.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$0.56 for Amara and $335.21 for Cigna. Over the past year, Amara's prices ranged from S$0.51 to S$0.64, with a yearly change of 24.51%. 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.