Cigna vs Unum Which Should You Buy?

Cigna and Unum are two well-known companies in the insurance and financial services industry. Both companies offer various products and services, including health insurance, disability insurance, and investment services. Cigna has a strong presence in the healthcare sector, while Unum is known for its focus on disability insurance. Investors may be interested in comparing the financial performance and stock performance of these two companies to make informed investment decisions. Let's delve deeper into the comparison of Cigna and Unum stocks.

Cigna or Unum?

When comparing Cigna and Unum, 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 Unum.

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 2.12%, while Unum has a dividend yield of 2.72%. 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 64.59%. On the other hand, Unum reports a 5-year dividend growth of 7.24% year and a payout ratio of 16.51%.

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 37.52 and Unum's P/E ratio at 7.75. 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 2.13 while Unum's P/B ratio is 1.25.

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 Unum's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 5.59% and Unum's ROE at 17.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $316.77 for Cigna and $72.46 for Unum. Over the past year, Cigna's prices ranged from $253.95 to $370.83, with a yearly change of 46.02%. Unum's prices fluctuated between $41.97 and $73.24, with a yearly change of 74.51%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.