American Financial Group, Inc. (AFG) vs Loews Corporation (L)

American Financial Group, Inc. and Loews Corporation are both Insurance Property & Casualty companies. Loews Corporation is the larger, with a market value of $21.5B against $11.5B — 1.9× the size. American Financial Group, Inc. trades at the lower P/E: 12.1× against 12.8×. Loews Corporation grew revenue faster over the last twelve months: 3.50% against −0.24%. American Financial Group, Inc. has the higher net margin (11.5% vs 9.02%) and the higher return on invested capital (14.4% vs 6.03%). Both pay a dividend; American Financial Group, Inc. yields more (4.48% vs 0.35%). Across the 23 metrics below, American Financial Group, Inc. leads on 17 and Loews Corporation on 6.

Valuation

Metric AFG L Insurance Property & Casualty median
P/E 12.08 12.85 10.29
P/S 1.39 1.15 1.17
P/B 2.38 1.08 1.83
Price to free cash flow 7.98 12.20 7.48
EV/EBITDA 8.58 10.91 7.49
EV/Sales 1.43 1.60 1.13
Earnings yield 8.28% 7.78% 9.50%
Free cash flow yield 12.53% 8.20% 13.29%

Profitability

Metric AFG L Insurance Property & Casualty median
Gross margin 22.29% 54.39% 41.16%
Operating margin 15.60% 14.69% 15.09%
Net margin 11.51% 9.02% 11.51%
Free cash flow margin 17.37% 9.45% 17.59%
Return on equity 20.41% 8.78% 18.19%
Return on assets 2.99% 1.96% 3.74%
Return on invested capital 14.44% 6.03% 12.06%

Growth

Metric AFG L Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 3.50% 8.69%
EPS growth (last fiscal year) (4.64%) 24.34% —
Revenue growth, 5-year CAGR 7.22% 7.96% 9.23%
Net income growth, 5-year CAGR 2.84% 0.00% 10.09%

Health

Metric AFG L Insurance Property & Casualty median
Debt to equity 0.38 0.45 0.25
Current ratio 0.49 0.25 0.42
Net debt to EBITDA 0.08 2.88 0.08

Dividend

Metric AFG L Insurance Property & Casualty median
Dividend yield 4.48% 0.35% 2.79%
Payout ratio 0.25 0.05 0.27

Size

Metric AFG L Insurance Property & Casualty median
Market cap 11.48b 21.48b 2.44b

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