UNITED vs Cigna Which Is Stronger?

UnitedHealth Group and Cigna Corporation are two major players in the healthcare industry, both offering a variety of insurance products and services. UnitedHealth Group is a diversified health and well-being company, while Cigna is a global health service company. Both companies have seen significant growth in their stock prices in recent years, but their performance can vary due to different factors such as market conditions, regulatory changes, and company-specific developments. Investors looking to compare United vs Cigna stocks should consider various financial metrics, industry trends, and growth potential.

UNITED or Cigna?

When comparing UNITED and Cigna, 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 UNITED and Cigna.

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. UNITED has a dividend yield of 3.0%, while Cigna has a dividend yield of 1.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. UNITED reports a 5-year dividend growth of 6.43% year and a payout ratio of 0.00%. On the other hand, Cigna reports a 5-year dividend growth of 161.81% year and a payout ratio of 50.71%.

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 UNITED P/E ratio at 51.38 and Cigna's P/E ratio at 25.83. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. UNITED P/B ratio is 1.40 while Cigna's P/B ratio is 1.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, UNITED has seen a 5-year revenue growth of -0.46%, while Cigna's is 2.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with UNITED's ROE at 2.56% and Cigna's ROE at 7.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥798.00 for UNITED and $279.88 for Cigna. Over the past year, UNITED's prices ranged from ¥670.00 to ¥953.00, with a yearly change of 42.24%. Cigna's prices fluctuated between $279.88 and $370.83, with a yearly change of 32.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.