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 $28.9B against $13.0B — 2.2× the size. Cincinnati Financial Corporation trades at the lower P/E: 10.9× against 12.7×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 9.91% against 3.27%. Cincinnati Financial Corporation has the higher net margin (20.1% vs 12.0%) and the higher return on invested capital (13.2% vs 0.00%). Both pay a dividend; American Financial Group, Inc. yields more (2.32% vs 1.96%). Across the 21 metrics below, Cincinnati Financial Corporation leads on 15 and American Financial Group, Inc. on 6.

Valuation

Metric AFG CINF Insurance Property & Casualty median
P/E 12.71 10.90 12.17
P/S 1.52 2.17 1.26
P/B 2.68 1.78 1.85
Price to free cash flow 7.95 9.37 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.87% 9.17% 8.20%
Free cash flow yield 12.58% 10.67% 11.86%

Profitability

Metric AFG CINF Insurance Property & Casualty median
Gross margin 22.74% 25.48% 37.39%
Operating margin 16.25% 25.21% 14.67%
Net margin 11.96% 20.07% 10.16%
Free cash flow margin 20.57% 23.19% 18.60%
Return on equity 21.57% 16.87% 16.59%
Return on assets 2.93% 6.41% 3.38%
Return on invested capital 0.00% 13.22% 9.43%

Growth

Metric AFG CINF Insurance Property & Casualty median
Revenue growth (TTM) 3.27% 9.91% 5.70%
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 0.39 0.05 0.25
Current ratio 0.49 0.27 0.49
Net debt to EBITDA 0.08 (0.17) 0.08

Dividend

Metric AFG CINF Insurance Property & Casualty median
Dividend yield 2.32% 1.96% 1.56%
Payout ratio 0.29 0.22 0.15

Size

Metric AFG CINF Insurance Property & Casualty median
Market cap 12.96b 28.91b 2.64b

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