American Financial Group, Inc. (AFG) vs Cincinnati Financial Corporation (CINF)

American Financial Group, Inc. and Cincinnati Financial Corporation are both Insurance Property & Casualty companies. Cincinnati Financial Corporation is the larger, with a market value of $25.7B against $12.1B — 2.1× the size. Cincinnati Financial Corporation trades at the lower P/E: 8.0× against 13.0×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 19.6% against −0.24%. Cincinnati Financial Corporation has the higher net margin (23.8% vs 11.5%) and the higher return on invested capital (16.7% vs 14.4%). Both pay a dividend; American Financial Group, Inc. yields more (2.42% vs 2.15%). Across the 21 metrics below, Cincinnati Financial Corporation leads on 18 and American Financial Group, Inc. on 3.

Valuation

Metric AFG CINF Insurance Property & Casualty median
P/E 13.04 7.99 10.75
P/S 1.50 1.89 1.21
P/B 2.57 1.58 1.99
Price to free cash flow 8.61 7.76 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.67% 12.52% 9.08%
Free cash flow yield 11.62% 12.88% 12.11%

Profitability

Metric AFG CINF Insurance Property & Casualty median
Gross margin 22.29% 30.39% 41.16%
Operating margin 15.60% 30.16% 15.09%
Net margin 11.51% 23.84% 11.51%
Free cash flow margin 17.37% 24.37% 17.46%
Return on equity 20.41% 21.48% 17.34%
Return on assets 2.99% 8.11% 3.74%
Return on invested capital 14.44% 16.65% 12.06%

Growth

Metric AFG CINF Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 19.55% 8.02%
EPS growth (last fiscal year) (4.64%) 4.40% 39.61%
Revenue growth, 5-year CAGR 7.22% 10.88% 9.23%
Net income growth, 5-year CAGR 2.84% 14.50% 10.09%

Health

Metric AFG CINF Insurance Property & Casualty median
Debt to equity 0.38 0.05 0.25
Current ratio 0.49 0.30 0.42
Net debt to EBITDA 0.08 (0.17) 0.08

Dividend

Metric AFG CINF Insurance Property & Casualty median
Dividend yield 2.42% 2.15% 1.50%
Payout ratio 0.32 0.17 0.14

Size

Metric AFG CINF Insurance Property & Casualty median
Market cap 12.08b 25.66b 2.67b

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