Cigna vs Globe Life Which Offers More Value?

Sure! Cigna and Globe Life are two prominent companies in the insurance industry with their respective stocks being closely watched by investors. Cigna, a global health service company, is known for its strong financial performance and diversified product offerings. On the other hand, Globe Life, a life insurance company, has shown steady growth and profitability over the years. Both stocks have their own unique strengths and potential opportunities for growth, making them appealing choices for investors looking to diversify their portfolios.

Cigna or Globe Life?

When comparing Cigna and Globe Life, 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 Globe Life.

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 Globe Life has a dividend yield of 0.68%. 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, Globe Life reports a 5-year dividend growth of 6.97% year and a payout ratio of 7.93%.

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 Globe Life's P/E ratio at 8.50. 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 Globe Life's P/B ratio is 2.00.

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 Globe Life's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Globe Life's ROE at 22.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $103.70 for Globe Life. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. Globe Life's prices fluctuated between $38.95 and $132.00, with a yearly change of 238.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.