American Financial Group, Inc. (AFG) vs W.R. Berkley Corporation (WRB)

American Financial Group, Inc. and W.R. Berkley Corporation are both Insurance Property & Casualty companies. W.R. Berkley Corporation is the larger, with a market value of $25.0B against $11.5B — 2.2× the size. American Financial Group, Inc. trades at the lower P/E: 12.1× against 13.7×. W.R. Berkley Corporation grew revenue faster over the last twelve months: 4.27% against −0.24%. W.R. Berkley Corporation has the higher net margin (12.9% vs 11.5%) and the higher return on invested capital (15.7% vs 14.4%). Both pay a dividend; American Financial Group, Inc. yields more (4.48% vs 1.72%). Across the 23 metrics below, W.R. Berkley Corporation leads on 13 and American Financial Group, Inc. on 10.

Valuation

Metric AFG WRB Insurance Property & Casualty median
P/E 12.08 13.66 10.29
P/S 1.39 1.75 1.17
P/B 2.38 2.64 1.83
Price to free cash flow 7.98 7.62 7.48
EV/EBITDA 8.58 10.60 7.49
EV/Sales 1.43 1.76 1.13
Earnings yield 8.28% 7.32% 9.50%
Free cash flow yield 12.53% 13.13% 13.29%

Profitability

Metric AFG WRB Insurance Property & Casualty median
Gross margin 22.29% 47.56% 41.16%
Operating margin 15.60% 17.04% 15.09%
Net margin 11.51% 12.94% 11.51%
Free cash flow margin 17.37% 22.92% 17.59%
Return on equity 20.41% 20.14% 18.19%
Return on assets 2.99% 4.37% 3.74%
Return on invested capital 14.44% 15.74% 12.06%

Growth

Metric AFG WRB Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 4.27% 8.69%
EPS growth (last fiscal year) (4.64%) 2.06% —
Revenue growth, 5-year CAGR 7.22% 12.67% 9.23%
Net income growth, 5-year CAGR 2.84% 27.38% 10.09%

Health

Metric AFG WRB Insurance Property & Casualty median
Debt to equity 0.38 0.29 0.25
Current ratio 0.49 0.32 0.42
Net debt to EBITDA 0.08 0.13 0.08

Dividend

Metric AFG WRB Insurance Property & Casualty median
Dividend yield 4.48% 1.72% 2.79%
Payout ratio 0.25 0.09 0.27

Size

Metric AFG WRB Insurance Property & Casualty median
Market cap 11.48b 24.98b 2.44b

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