American Financial Group, Inc. (AFG) vs The Hanover Insurance Group, Inc. (THG)

American Financial Group, Inc. and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. American Financial Group, Inc. is the larger, with a market value of $12.1B against $8.0B — 1.5× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.0× against 13.0×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.57% against −0.24%. American Financial Group, Inc. has the higher net margin (11.5% vs 11.2%) and the higher return on invested capital (14.4% vs 14.2%). Both pay a dividend; American Financial Group, Inc. yields more (2.42% vs 1.63%). Across the 21 metrics below, The Hanover Insurance Group, Inc. leads on 14 and American Financial Group, Inc. on 7.

Valuation

Metric AFG THG Insurance Property & Casualty median
P/E 13.04 11.02 10.75
P/S 1.50 1.21 1.21
P/B 2.57 2.22 1.99
Price to free cash flow 8.61 6.51 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.67% 9.08% 9.08%
Free cash flow yield 11.62% 15.37% 12.11%

Profitability

Metric AFG THG Insurance Property & Casualty median
Gross margin 22.29% 44.76% 41.16%
Operating margin 15.60% 14.98% 15.09%
Net margin 11.51% 11.17% 11.51%
Free cash flow margin 17.37% 18.52% 17.46%
Return on equity 20.41% 21.94% 17.34%
Return on assets 2.99% 4.64% 3.74%
Return on invested capital 14.44% 14.21% 12.06%

Growth

Metric AFG THG Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 5.57% 8.02%
EPS growth (last fiscal year) (4.64%) 55.21% 39.61%
Revenue growth, 5-year CAGR 7.22% 6.45% 9.23%
Net income growth, 5-year CAGR 2.84% 13.06% 10.09%

Health

Metric AFG THG Insurance Property & Casualty median
Debt to equity 0.38 0.23 0.25
Current ratio 0.49 0.37 0.42
Net debt to EBITDA 0.08 0.11 0.08

Dividend

Metric AFG THG Insurance Property & Casualty median
Dividend yield 2.42% 1.63% 1.50%
Payout ratio 0.32 0.18 0.14

Size

Metric AFG THG Insurance Property & Casualty median
Market cap 12.08b 7.95b 2.67b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack