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 $27.9B against $12.7B — 2.2× the size. American Financial Group, Inc. trades at the lower P/E: 13.4× against 15.8×. W.R. Berkley Corporation grew revenue faster over the last twelve months: 1.45% against −0.24%. W.R. Berkley Corporation has the higher net margin (12.5% vs 11.5%) and the lower return on invested capital (0.00% vs 14.4%). Both pay a dividend; American Financial Group, Inc. yields more (2.36% vs 0.25%). Across the 21 metrics below, American Financial Group, Inc. leads on 11 and W.R. Berkley Corporation on 10.

Valuation

Metric AFG WRB Insurance Property & Casualty median
P/E 13.40 15.82 11.87
P/S 1.54 1.96 1.26
P/B 2.64 2.97 1.99
Price to free cash flow 8.85 8.55 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.46% 6.32% 8.04%
Free cash flow yield 11.31% 11.69% 11.85%

Profitability

Metric AFG WRB Insurance Property & Casualty median
Gross margin 22.29% 47.25% 41.66%
Operating margin 15.60% 16.58% 14.71%
Net margin 11.51% 12.53% 10.84%
Free cash flow margin 17.37% 0.00% 17.46%
Return on equity 20.41% 0.00% 16.87%
Return on assets 2.99% 0.00% 3.57%
Return on invested capital 14.44% 0.00% 12.03%

Growth

Metric AFG WRB Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 1.45% 5.92%
EPS growth (last fiscal year) (4.64%) 2.06% 39.61%
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 2.36% 0.25% 1.44%
Payout ratio 0.32 0.04 0.14

Size

Metric AFG WRB Insurance Property & Casualty median
Market cap 12.69b 27.90b 2.61b

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