Cigna vs Kaiser

Cigna and Kaiser are two well-known health insurance companies that are often compared against each other in the stock market. Cigna, a global health services company, offers a range of insurance products and services to individuals and businesses. Kaiser Permanente, on the other hand, is an integrated healthcare provider that offers both insurance coverage and medical services. Investors often debate the performance of Cigna versus Kaiser stocks, considering factors such as market share, profitability, and growth potential.

Cigna or Kaiser?

When comparing Cigna and Kaiser, 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 Kaiser.

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 1.94%, while Kaiser has a dividend yield of -%. 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 64.63%. On the other hand, Kaiser reports a 5-year dividend growth of 0.00% 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 42.21 and Kaiser's P/E ratio at 136.00. 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 2.39 while Kaiser's P/B ratio is 5.82.

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 Kaiser's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 5.37% and Kaiser's ROE at 8.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $348.36 for Cigna and ₹7.90 for Kaiser. Over the past year, Cigna's prices ranged from $253.95 to $370.83, with a yearly change of 46.02%. Kaiser's prices fluctuated between ₹0.48 and ₹8.40, with a yearly change of 1650.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.