Cigna vs Old Mutual Which Is Stronger?

Cigna Corporation and Old Mutual Limited are two leading companies in the financial sector with a strong presence in the global market. Both companies are renowned for their diverse investments and solid financial performance. Cigna focuses on health insurance and related services, while Old Mutual offers a wide range of financial products and services. Investors looking to diversify their portfolios may consider exploring the stocks of both companies to capitalize on their potential for growth and stability in the market.

Cigna or Old Mutual?

When comparing Cigna and Old Mutual, 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 Old Mutual.

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 1.98%, while Old Mutual has a dividend yield of 6.79%. 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, Old Mutual reports a 5-year dividend growth of 0.00% year and a payout ratio of 44.53%.

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 25.93 and Old Mutual's P/E ratio at 6.58. 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 1.87 while Old Mutual's P/B ratio is 0.91.

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 Old Mutual's is 0.71%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Old Mutual's ROE at 13.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $282.27 for Cigna and $0.66 for Old Mutual. Over the past year, Cigna's prices ranged from $282.27 to $370.83, with a yearly change of 31.37%. Old Mutual's prices fluctuated between $0.53 and $0.82, with a yearly change of 54.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.