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 $28.9B against $23.9B — 1.2× the size. Cincinnati Financial Corporation trades at the lower P/E: 10.9× against 13.8×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 9.91% against −0.64%. Cincinnati Financial Corporation has the higher net margin (20.1% vs 11.1%) and the higher return on invested capital (13.2% vs 8.25%). Across the 20 metrics below, Cincinnati Financial Corporation leads on 14 and Markel Group Inc. on 6.

Valuation

Metric CINF MKL Insurance Property & Casualty median
P/E 10.90 13.79 12.17
P/S 2.17 1.50 1.26
P/B 1.78 1.31 1.85
Price to free cash flow 9.37 13.42 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.17% 7.25% 8.20%
Free cash flow yield 10.67% 7.45% 11.86%

Profitability

Metric CINF MKL Insurance Property & Casualty median
Gross margin 25.48% 50.23% 37.39%
Operating margin 25.21% 15.31% 14.67%
Net margin 20.07% 11.13% 10.16%
Free cash flow margin 23.19% 11.19% 18.60%
Return on equity 16.87% 9.81% 16.59%
Return on assets 6.41% 2.57% 3.38%
Return on invested capital 13.22% 8.25% 9.43%

Growth

Metric CINF MKL Insurance Property & Casualty median
Revenue growth (TTM) 9.91% (0.64%) 5.70%
EPS growth (last fiscal year) 4.40% (15.10%) 39.61%
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 0.24 0.25
Current ratio 0.27 0.59 0.49
Net debt to EBITDA (0.17) (0.09) 0.08

Dividend

Metric CINF MKL Insurance Property & Casualty median
Dividend yield 1.96% — 1.56%
Payout ratio 0.22 — 0.15

Size

Metric CINF MKL Insurance Property & Casualty median
Market cap 28.91b 23.85b 2.64b

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