Cigna vs AT&T Which Is More Reliable?

Cigna Corporation and AT&T Inc. are two household names in the stock market, each with a unique set of strengths and weaknesses. Cigna is a global health services company that offers insurance plans and health-related products, while AT&T is a telecommunications giant providing a wide range of services. Both companies have seen fluctuations in their stock prices over recent years, with investors weighing various factors such as market trends, revenue streams, and competitive landscapes when considering investing in either of these stocks.

Cigna or AT&T?

When comparing Cigna and AT&T, 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 AT&T.

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 AT&T has a dividend yield of 4.7%. 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, AT&T reports a 5-year dividend growth of -11.11% year and a payout ratio of 90.45%.

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 AT&T's P/E ratio at 18.79. 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 AT&T's P/B ratio is 1.66.

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 AT&T's is -0.32%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and AT&T's ROE at 8.72%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $23.26 for AT&T. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. AT&T's prices fluctuated between $15.94 and $24.03, with a yearly change of 50.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.