Cigna vs Delta Which Is More Reliable?

Cigna and Delta are two major players in the health insurance industry, each with its own strengths and weaknesses. Cigna has a strong presence in the global market and offers a diverse range of insurance products, while Delta is known for its focus on the domestic market and innovative technology solutions. Investors interested in healthcare stocks may find Cigna's stability appealing, while Delta's potential for growth could attract those seeking higher returns. Both companies have experienced fluctuations in their stock prices in recent years, making them interesting options for investors looking to diversify their portfolios.

Cigna or Delta?

When comparing Cigna and Delta, 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 Delta.

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 Delta has a dividend yield of 1.04%. 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 64.59%. On the other hand, Delta reports a 5-year dividend growth of 4.56% 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 40.42 and Delta's P/E ratio at 20.69. 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 2.29 while Delta's P/B ratio is 1.26.

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 Delta's is 0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 5.59% and Delta's ROE at 6.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $339.81 for Cigna and ₹117.55 for Delta. Over the past year, Cigna's prices ranged from $253.95 to $370.83, with a yearly change of 46.02%. Delta's prices fluctuated between ₹104.45 and ₹159.80, with a yearly change of 52.99%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.