American Financial Group, Inc. (AFG) vs Markel Group Inc. (MKL)

American Financial Group, Inc. and Markel Group Inc. are both Insurance Property & Casualty companies. Markel Group Inc. is the larger, with a market value of $23.9B against $13.0B — 1.8× the size. American Financial Group, Inc. trades at the lower P/E: 12.7× against 13.8×. American Financial Group, Inc. grew revenue faster over the last twelve months: 3.27% against −0.64%. American Financial Group, Inc. has the higher net margin (12.0% vs 11.1%) and the lower return on invested capital (0.00% vs 8.25%). Across the 20 metrics below, American Financial Group, Inc. leads on 11 and Markel Group Inc. on 9.

Valuation

Metric AFG MKL Insurance Property & Casualty median
P/E 12.71 13.79 12.17
P/S 1.52 1.50 1.26
P/B 2.68 1.31 1.85
Price to free cash flow 7.95 13.42 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.87% 7.25% 8.20%
Free cash flow yield 12.58% 7.45% 11.86%

Profitability

Metric AFG MKL Insurance Property & Casualty median
Gross margin 22.74% 50.23% 37.39%
Operating margin 16.25% 15.31% 14.67%
Net margin 11.96% 11.13% 10.16%
Free cash flow margin 20.57% 11.19% 18.60%
Return on equity 21.57% 9.81% 16.59%
Return on assets 2.93% 2.57% 3.38%
Return on invested capital 0.00% 8.25% 9.43%

Growth

Metric AFG MKL Insurance Property & Casualty median
Revenue growth (TTM) 3.27% (0.64%) 5.70%
EPS growth (last fiscal year) (4.64%) (15.10%) 39.61%
Revenue growth, 5-year CAGR 7.22% 11.25% 9.23%
Net income growth, 5-year CAGR 2.84% 21.14% 10.09%

Health

Metric AFG MKL Insurance Property & Casualty median
Debt to equity 0.39 0.24 0.25
Current ratio 0.49 0.59 0.49
Net debt to EBITDA 0.08 (0.09) 0.08

Dividend

Metric AFG MKL Insurance Property & Casualty median
Dividend yield 2.32% — 1.56%
Payout ratio 0.29 — 0.15

Size

Metric AFG MKL Insurance Property & Casualty median
Market cap 12.96b 23.85b 2.64b

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