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 $24.9B against $11.5B — 2.2× the size. Cincinnati Financial Corporation trades at the lower P/E: 7.6× against 12.1×. 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 (4.48% vs 2.99%). Across the 23 metrics below, Cincinnati Financial Corporation leads on 19 and American Financial Group, Inc. on 4.

Valuation

Metric AFG CINF Insurance Property & Casualty median
P/E 12.08 7.58 10.29
P/S 1.39 1.80 1.17
P/B 2.38 1.50 1.83
Price to free cash flow 7.98 7.37 7.48
EV/EBITDA 8.58 5.54 7.49
EV/Sales 1.43 1.73 1.13
Earnings yield 8.28% 13.19% 9.50%
Free cash flow yield 12.53% 13.57% 13.29%

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% 17.59%
Return on equity 20.41% 21.48% 18.19%
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% 8.69%
EPS growth (last fiscal year) (4.64%) 4.40% —
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 4.48% 2.99% 2.79%
Payout ratio 0.25 0.34 0.27

Size

Metric AFG CINF Insurance Property & Casualty median
Market cap 11.48b 24.91b 2.44b

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