Cincinnati Financial Corporation (CINF) vs Markel Group Inc. (MKL)

Cincinnati Financial Corporation and Markel Group Inc. are both Insurance Property & Casualty companies. Cincinnati Financial Corporation is the larger, with a market value of $24.9B against $21.5B — 1.2× the size. Cincinnati Financial Corporation trades at the lower P/E: 7.6× against 9.5×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 19.6% against 0.86%. Cincinnati Financial Corporation has the higher net margin (23.8% vs 13.8%) and the higher return on invested capital (16.7% vs 10.0%). Across the 22 metrics below, Cincinnati Financial Corporation leads on 15 and Markel Group Inc. on 7.

Valuation

Metric CINF MKL Insurance Property & Casualty median
P/E 7.58 9.46 10.29
P/S 1.80 1.31 1.17
P/B 1.50 1.14 1.83
Price to free cash flow 7.37 10.23 7.48
EV/EBITDA 5.54 7.11 7.49
EV/Sales 1.73 1.32 1.13
Earnings yield 13.19% 10.57% 9.50%
Free cash flow yield 13.57% 9.77% 13.29%

Profitability

Metric CINF MKL Insurance Property & Casualty median
Gross margin 30.39% 51.93% 41.16%
Operating margin 30.16% 18.63% 15.09%
Net margin 23.84% 13.77% 11.51%
Free cash flow margin 24.37% 12.76% 17.59%
Return on equity 21.48% 12.57% 18.19%
Return on assets 8.11% 3.31% 3.74%
Return on invested capital 16.65% 10.01% 12.06%

Growth

Metric CINF MKL Insurance Property & Casualty median
Revenue growth (TTM) 19.55% 0.86% 8.69%
EPS growth (last fiscal year) 4.40% (15.10%) —
Revenue growth, 5-year CAGR 10.88% 11.25% 9.23%
Net income growth, 5-year CAGR 14.50% 21.14% 10.09%

Health

Metric CINF MKL Insurance Property & Casualty median
Debt to equity 0.05 0.23 0.25
Current ratio 0.30 0.57 0.42
Net debt to EBITDA (0.17) (0.09) 0.08

Dividend

Metric CINF MKL Insurance Property & Casualty median
Dividend yield 2.99% — 2.79%
Payout ratio 0.34 0.00 0.27

Size

Metric CINF MKL Insurance Property & Casualty median
Market cap 24.91b 21.50b 2.44b

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