Cigna vs MetLife

Cigna and MetLife are both prominent players in the insurance industry, offering a wide range of products and services to individuals and businesses. Investors often compare the two companies' stocks to determine which presents a more attractive opportunity. While Cigna has shown strong growth in recent years, MetLife has a solid reputation and a long history of stability. Both companies operate in a highly competitive market, and factors such as market trends, regulatory changes, and economic conditions can impact their stock performance.

Cigna or MetLife?

When comparing Cigna and MetLife, 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 MetLife.

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 1.96%, while MetLife has a dividend yield of 2.49%. 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, MetLife reports a 5-year dividend growth of 4.41% year and a payout ratio of 59.99%.

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 41.89 and MetLife's P/E ratio at 20.92. 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 2.37 while MetLife's P/B ratio is 2.23.

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 MetLife's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 5.37% and MetLife's ROE at 10.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $344.15 for Cigna and $85.53 for MetLife. Over the past year, Cigna's prices ranged from $253.95 to $370.83, with a yearly change of 46.02%. MetLife's prices fluctuated between $57.91 and $86.94, with a yearly change of 50.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.