Kansas City Life Insurance vs Pearson Which Is a Smarter Choice?

Kansas City Life Insurance is a well-established company that offers a range of insurance products, including life, health, and retirement plans. On the other hand, Pearson stocks represent ownership in the education and publishing company, Pearson PLC. While Kansas City Life Insurance provides protection against financial risks, Pearson stocks give investors the opportunity to profit from the performance of the company. Both options have their own advantages and risks, making it important for investors to carefully consider their financial goals before making a decision.

Kansas City Life Insurance or Pearson?

When comparing Kansas City Life Insurance and Pearson, 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 Kansas City Life Insurance and Pearson.

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. Kansas City Life Insurance has a dividend yield of 1.97%, while Pearson has a dividend yield of 1.88%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Kansas City Life Insurance reports a 5-year dividend growth of -12.31% year and a payout ratio of 9.56%. On the other hand, Pearson reports a 5-year dividend growth of 2.35% year and a payout ratio of 40.22%.

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 Kansas City Life Insurance P/E ratio at 6.08 and Pearson's P/E ratio at 18.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Kansas City Life Insurance P/B ratio is 0.53 while Pearson's P/B ratio is 2.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Kansas City Life Insurance has seen a 5-year revenue growth of 0.08%, while Pearson's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Kansas City Life Insurance's ROE at 9.34% and Pearson's ROE at 11.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.50 for Kansas City Life Insurance and $15.55 for Pearson. Over the past year, Kansas City Life Insurance's prices ranged from $27.07 to $39.01, with a yearly change of 44.11%. Pearson's prices fluctuated between $11.64 and $15.65, with a yearly change of 34.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.