Cigna vs United Health Products Which Is a Better Investment?

Cigna and UnitedHealth Group are two well-known companies in the healthcare industry that provide various products and services. Both companies offer health insurance coverage, pharmacy benefit management, and other healthcare-related services. Cigna has a strong presence in the international market, while UnitedHealth Group is the largest health insurance provider in the United States. Investors looking to invest in healthcare stocks may want to compare and analyze the financial performance and growth potential of these two companies before making a decision.

Cigna or United Health Products?

When comparing Cigna and United Health Products, 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 United Health Products.

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 United Health Products 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 50.71%. On the other hand, United Health Products 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 25.83 and United Health Products's P/E ratio at -8.54. 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 United Health Products's P/B ratio is -6.71.

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 United Health Products's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 7.12% and United Health Products's ROE at 87.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.88 for Cigna and $0.05 for United Health Products. Over the past year, Cigna's prices ranged from $279.88 to $370.83, with a yearly change of 32.50%. United Health Products's prices fluctuated between $0.05 and $0.27, with a yearly change of 484.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.