Trupanion (NASDAQ: TRUP) and Cigna (NYSE:CI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
74.8% of Trupanion shares are owned by institutional investors. Comparatively, 88.8% of Cigna shares are owned by institutional investors. 31.2% of Trupanion shares are owned by company insiders. Comparatively, 1.1% of Cigna shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Cigna pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Trupanion does not pay a dividend. Cigna pays out 0.4% of its earnings in the form of a dividend.
This table compares Trupanion and Cigna’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Trupanion has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Cigna has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
This is a summary of recent recommendations for Trupanion and Cigna, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Trupanion currently has a consensus price target of $35.33, indicating a potential upside of 31.89%. Cigna has a consensus price target of $209.22, indicating a potential upside of 21.89%. Given Trupanion’s stronger consensus rating and higher possible upside, research analysts plainly believe Trupanion is more favorable than Cigna.
Earnings and Valuation
This table compares Trupanion and Cigna’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Trupanion||$242.67 million||3.33||-$1.50 million||($0.07)||-382.71|
|Cigna||$41.62 billion||1.00||$2.24 billion||$10.46||16.41|
Cigna has higher revenue and earnings than Trupanion. Trupanion is trading at a lower price-to-earnings ratio than Cigna, indicating that it is currently the more affordable of the two stocks.
Cigna beats Trupanion on 11 of the 16 factors compared between the two stocks.
Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on monthly subscription basis in the United States, Canada, and Puerto Rico. The company operates through Subscription Business and Other Business segments. It serves pet owners and veterinarians through third-party referrals and online member acquisition channels. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. Trupanion, Inc. was founded in 2000 and is headquartered in Seattle, Washington.
Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. It operates through Global Health Care, Global Supplemental Benefits, Group Disability and Life, and Other Operations segments. The Global Health Care segment offers medical, dental, behavioral health, vision, and prescription drug benefit plans, as well as health advocacy programs, and other products and services to insured and self-insured customers. This segment also provides Medicare Advantage and Medicare Part D plans to seniors, and Medicaid plans. The Global Supplemental Benefits segment offers supplemental health, life, and accident insurance products. The Group Disability and Life segment provides group long-term and short-term disability, group life, accident, and specialty insurance products and related services. The Other Operations segment offers corporate-owned life insurance products that are permanent insurance contracts sold to corporations to provide coverage; and run-off settlement annuity contracts. The company distributes its products and services through insurance brokers and insurance consultants; and directly to employers, unions and other groups, or individuals, as well as through direct response television and the Internet. Cigna Corporation was founded in 1792 and is headquartered in Bloomfield, Connecticut.
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