Cigna vs Cincinnati Financial Which Performs Better?

Cigna Corporation and Cincinnati Financial Corporation are two well-known companies in the financial sector. Cigna is a global health services company that offers insurance and related products, while Cincinnati Financial focuses on property and casualty insurance. Both companies have a strong market presence and a history of delivering solid financial performance. Investors often compare these two stocks to determine which may be a better investment opportunity. By analyzing their financials, growth prospects, and market trends, investors can make informed decisions about investing in Cigna or Cincinnati Financial stocks.

Cigna or Cincinnati Financial?

When comparing Cigna and Cincinnati 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 Cigna and Cincinnati 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. Cigna has a dividend yield of 1.99%, while Cincinnati Financial has a dividend yield of 2.09%. 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, Cincinnati Financial reports a 5-year dividend growth of 7.19% year and a payout ratio of 15.67%.

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 Cincinnati Financial's P/E ratio at 7.74. 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 Cincinnati Financial's P/B ratio is 1.72.

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 Cincinnati Financial's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Cincinnati Financial's ROE at 23.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $151.78 for Cincinnati Financial. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. Cincinnati Financial's prices fluctuated between $100.31 and $161.75, with a yearly change of 61.25%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.