Cigna vs Prudential Which Is More Lucrative?

Cigna and Prudential are both well-established companies in the financial and insurance industries. Cigna is a global health services firm that focuses on providing healthcare, dental, disability, and life insurance to individuals and businesses. Prudential, on the other hand, is a financial services company that offers insurance, retirement and investment solutions. Both companies have a strong track record of performance and stability in the stock market, making them attractive options for investors looking for long-term growth potential.

Cigna or Prudential?

When comparing Cigna and Prudential, 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 Prudential.

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 Prudential has a dividend yield of 2.57%. 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, Prudential reports a 5-year dividend growth of -21.72% year and a payout ratio of 64.38%.

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 Prudential's P/E ratio at 65.20. 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 Prudential's P/B ratio is 3.51.

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 Prudential's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and Prudential's ROE at 4.50%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $16.30 for Prudential. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. Prudential's prices fluctuated between $15.11 and $22.52, with a yearly change of 49.04%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.