Cigna vs Voya Financial

Cigna Corporation and Voya Financial are two prominent players in the insurance and financial services industry. While both companies offer a range of products and services, they serve different market segments and have distinct business models. Cigna focuses on providing health insurance and related services to individuals and employers, while Voya Financial offers retirement, investment, and insurance products to individuals and institutions. Investors looking to capitalize on the growing demand for insurance and financial services may want to consider these two stocks in their portfolio.

Cigna or Voya Financial?

When comparing Cigna and Voya Financial, 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 Voya Financial.

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 Voya Financial has a dividend yield of 3.06%. 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, Voya Financial reports a 5-year dividend growth of 97.44% year and a payout ratio of 24.64%.

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 Voya Financial's P/E ratio at 9.77. 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 Voya Financial's P/B ratio is 2.03.

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 Voya Financial's is 0.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cigna's ROE at 5.37% and Voya Financial's ROE at 21.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $344.15 for Cigna and $81.01 for Voya Financial. Over the past year, Cigna's prices ranged from $253.95 to $370.83, with a yearly change of 46.02%. Voya Financial's prices fluctuated between $63.02 and $82.26, with a yearly change of 30.53%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.