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 $21.5B against $11.5B — 1.9× the size. Markel Group Inc. trades at the lower P/E: 9.5× against 12.1×. 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 22 metrics below, Markel Group Inc. leads on 16 and American Financial Group, Inc. on 6.

Valuation

Metric AFG MKL Insurance Property & Casualty median
P/E 12.08 9.46 10.29
P/S 1.39 1.31 1.17
P/B 2.38 1.14 1.83
Price to free cash flow 7.98 10.23 7.48
EV/EBITDA 8.58 7.11 7.49
EV/Sales 1.43 1.32 1.13
Earnings yield 8.28% 10.57% 9.50%
Free cash flow yield 12.53% 9.77% 13.29%

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% 17.59%
Return on equity 20.41% 12.57% 18.19%
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% 8.69%
EPS growth (last fiscal year) (4.64%) (15.10%) —
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 4.48% — 2.79%
Payout ratio 0.25 0.00 0.27

Size

Metric AFG MKL Insurance Property & Casualty median
Market cap 11.48b 21.50b 2.44b

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