Cigna vs Guardian Capital Which Is More Promising?

Cigna and Guardian Capital are two prominent companies in the financial sector, each with a strong presence in the stock market. Cigna, a global health service company, offers insurance products and services, while Guardian Capital is a leading investment management firm. Investors often compare the performance of Cigna and Guardian Capital stocks to make informed decisions about their portfolios. Understanding the financial health and market trends of these companies can help investors maximize their returns and mitigate risks in their investments.

Cigna or Guardian Capital?

When comparing Cigna and Guardian Capital, 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 Guardian Capital.

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 Guardian Capital has a dividend yield of 3.46%. 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, Guardian Capital reports a 5-year dividend growth of 21.54% year and a payout ratio of 33.86%.

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 Guardian Capital's P/E ratio at 9.40. 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 Guardian Capital's P/B ratio is 0.78.

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 Guardian Capital's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Guardian Capital's ROE at 8.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and C$44.59 for Guardian Capital. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. Guardian Capital's prices fluctuated between C$39.47 and C$52.13, with a yearly change of 32.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.