Cigna vs Allianz Which Is More Favorable?

Cigna Corporation and Allianz SE are two prominent players in the financial services sector, with each offering unique investment opportunities for stakeholders. Cigna, a leading American health services company, has shown promising growth potential in the healthcare industry, while Allianz, a global insurance and asset management company, has a strong track record of stability and steady returns. Investors looking to diversify their portfolio may find both Cigna and Allianz stocks to be compelling options worth considering for long-term investment strategies.

Cigna or Allianz?

When comparing Cigna and Allianz, 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 Cigna and Allianz.

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. Cigna has a dividend yield of 1.99%, while Allianz has a dividend yield of 5.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cigna reports a 5-year dividend growth of 161.81% year and a payout ratio of 50.71%. On the other hand, Allianz reports a 5-year dividend growth of 6.96% year and a payout ratio of 0.00%.

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 Cigna P/E ratio at 25.83 and Allianz's P/E ratio at 1.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cigna P/B ratio is 1.86 while Allianz's P/B ratio is 0.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cigna has seen a 5-year revenue growth of 2.37%, while Allianz's is 9.80%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Allianz's ROE at 17.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $31.62 for Allianz. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. Allianz's prices fluctuated between $26.00 and $33.19, with a yearly change of 27.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.