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 $22.6B against $12.1B — 1.9× the size. Markel Group Inc. trades at the lower P/E: 10.1× against 13.0×. Markel Group Inc. grew revenue faster over the last twelve months: 0.86% against −0.24%. Markel Group Inc. has the higher net margin (13.8% vs 11.5%) and the lower return on invested capital (10.0% vs 14.4%). Across the 20 metrics below, Markel Group Inc. leads on 14 and American Financial Group, Inc. on 6.

Valuation

Metric AFG MKL Insurance Property & Casualty median
P/E 13.04 10.13 10.75
P/S 1.50 1.40 1.21
P/B 2.57 1.22 1.99
Price to free cash flow 8.61 10.96 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.67% 9.87% 9.08%
Free cash flow yield 11.62% 9.12% 12.11%

Profitability

Metric AFG MKL Insurance Property & Casualty median
Gross margin 22.29% 51.93% 41.16%
Operating margin 15.60% 18.63% 15.09%
Net margin 11.51% 13.77% 11.51%
Free cash flow margin 17.37% 12.76% 17.46%
Return on equity 20.41% 12.57% 17.34%
Return on assets 2.99% 3.31% 3.74%
Return on invested capital 14.44% 10.01% 12.06%

Growth

Metric AFG MKL Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 0.86% 8.02%
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 0.38 0.23 0.25
Current ratio 0.49 0.57 0.42
Net debt to EBITDA 0.08 (0.09) 0.08

Dividend

Metric AFG MKL Insurance Property & Casualty median
Dividend yield 2.42% — 1.50%
Payout ratio 0.32 — 0.14

Size

Metric AFG MKL Insurance Property & Casualty median
Market cap 12.08b 22.61b 2.67b

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