American Financial Group, Inc. (AFG) vs RLI Corp. (RLI)

American Financial Group, Inc. and RLI Corp. are both Insurance Property & Casualty companies. American Financial Group, Inc. is the larger, with a market value of $12.7B against $6.1B — 2.1× the size. American Financial Group, Inc. trades at the lower P/E: 13.4× against 15.6×. RLI Corp. grew revenue faster over the last twelve months: 4.65% against −0.24%. RLI Corp. has the higher net margin (20.3% vs 11.5%) and the higher return on invested capital (16.5% vs 14.4%). Both pay a dividend; American Financial Group, Inc. yields more (2.36% vs 0.78%). Across the 21 metrics below, RLI Corp. leads on 12 and American Financial Group, Inc. on 9.

Valuation

Metric AFG RLI Insurance Property & Casualty median
P/E 13.40 15.56 11.87
P/S 1.54 3.16 1.26
P/B 2.64 3.61 1.99
Price to free cash flow 8.85 11.53 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.46% 6.43% 8.04%
Free cash flow yield 11.31% 8.67% 11.85%

Profitability

Metric AFG RLI Insurance Property & Casualty median
Gross margin 22.29% 33.49% 41.66%
Operating margin 15.60% 26.42% 14.71%
Net margin 11.51% 20.34% 10.84%
Free cash flow margin 17.37% 27.37% 17.46%
Return on equity 20.41% 22.13% 16.87%
Return on assets 2.99% 6.23% 3.57%
Return on invested capital 14.44% 16.47% 12.03%

Growth

Metric AFG RLI Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 4.65% 5.92%
EPS growth (last fiscal year) (4.64%) 16.84% 39.61%
Revenue growth, 5-year CAGR 7.22% 13.86% 9.23%
Net income growth, 5-year CAGR 2.84% 20.75% 10.09%

Health

Metric AFG RLI Insurance Property & Casualty median
Debt to equity 0.38 0.18 0.25
Current ratio 0.49 0.25 0.42
Net debt to EBITDA 0.08 0.09 0.08

Dividend

Metric AFG RLI Insurance Property & Casualty median
Dividend yield 2.36% 0.78% 1.44%
Payout ratio 0.32 0.12 0.14

Size

Metric AFG RLI Insurance Property & Casualty median
Market cap 12.69b 6.13b 2.61b

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