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 $13.0B against $8.6B — 1.5× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.7× against 12.7×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.04% against 3.27%. American Financial Group, Inc. has the higher net margin (12.0% vs 11.0%) and the lower return on invested capital (0.00% vs 15.9%). Both pay a dividend; American Financial Group, Inc. yields more (2.32% vs 1.53%). 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 12.71 11.69 12.17
P/S 1.52 1.26 1.26
P/B 2.68 2.51 1.85
Price to free cash flow 7.95 7.08 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.87% 8.55% 8.20%
Free cash flow yield 12.58% 14.13% 11.86%

Profitability

Metric AFG THG Insurance Property & Casualty median
Gross margin 22.74% 44.41% 37.39%
Operating margin 16.25% 14.71% 14.67%
Net margin 11.96% 10.97% 10.16%
Free cash flow margin 20.57% 17.85% 18.60%
Return on equity 21.57% 21.83% 16.59%
Return on assets 2.93% 4.43% 3.38%
Return on invested capital 0.00% 15.87% 9.43%

Growth

Metric AFG THG Insurance Property & Casualty median
Revenue growth (TTM) 3.27% 5.04% 5.70%
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 0.39 0.25 0.25
Current ratio 0.49 0.39 0.49
Net debt to EBITDA 0.08 0.11 0.08

Dividend

Metric AFG THG Insurance Property & Casualty median
Dividend yield 2.32% 1.53% 1.56%
Payout ratio 0.29 0.18 0.15

Size

Metric AFG THG Insurance Property & Casualty median
Market cap 12.96b 8.57b 2.64b

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