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 $22.2B against $12.1B — 1.8× the size. American Financial Group, Inc. trades at the lower P/E: 13.0× against 13.5×. 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 (2.42% vs 0.23%). Across the 21 metrics below, American Financial Group, Inc. leads on 15 and Loews Corporation on 6.

Valuation

Metric AFG L Insurance Property & Casualty median
P/E 13.04 13.53 10.75
P/S 1.50 1.21 1.21
P/B 2.57 1.13 1.99
Price to free cash flow 8.61 12.85 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.67% 7.39% 9.08%
Free cash flow yield 11.62% 7.78% 12.11%

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% 17.46%
Return on equity 20.41% 8.78% 17.34%
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% 8.02%
EPS growth (last fiscal year) (4.64%) 24.34% 39.61%
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 2.42% 0.23% 1.50%
Payout ratio 0.32 0.03 0.14

Size

Metric AFG L Insurance Property & Casualty median
Market cap 12.08b 22.24b 2.67b

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