Cincinnati Financial Corporation (CINF) vs The Progressive Corporation (PGR)

Cincinnati Financial Corporation and The Progressive Corporation are both Insurance Property & Casualty companies. The Progressive Corporation is the larger, with a market value of $117.7B against $24.9B — 4.7× the size. Cincinnati Financial Corporation trades at the lower P/E: 7.6× against 10.3×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 19.6% against 10.5%. Cincinnati Financial Corporation has the higher net margin (23.8% vs 12.8%) and the lower return on invested capital (16.7% vs 23.0%). Both pay a dividend; Cincinnati Financial Corporation yields more (2.99% vs 1.71%). Across the 23 metrics below, Cincinnati Financial Corporation leads on 15 and The Progressive Corporation on 8.

Valuation

Metric CINF PGR Insurance Property & Casualty median
P/E 7.58 10.29 10.29
P/S 1.80 1.32 1.17
P/B 1.50 3.49 1.83
Price to free cash flow 7.37 7.48 7.48
EV/EBITDA 5.54 8.08 7.49
EV/Sales 1.73 1.41 1.13
Earnings yield 13.19% 9.72% 9.50%
Free cash flow yield 13.57% 13.37% 13.29%

Profitability

Metric CINF PGR Insurance Property & Casualty median
Gross margin 30.39% 17.21% 41.16%
Operating margin 30.16% 17.21% 15.09%
Net margin 23.84% 12.84% 11.51%
Free cash flow margin 24.37% 17.59% 17.59%
Return on equity 21.48% 34.94% 18.19%
Return on assets 8.11% 9.73% 3.74%
Return on invested capital 16.65% 23.03% 12.06%

Growth

Metric CINF PGR Insurance Property & Casualty median
Revenue growth (TTM) 19.55% 10.49% 8.69%
EPS growth (last fiscal year) 4.40% 33.54% —
Revenue growth, 5-year CAGR 10.88% 15.50% 9.23%
Net income growth, 5-year CAGR 14.50% 14.77% 10.09%

Health

Metric CINF PGR Insurance Property & Casualty median
Debt to equity 0.05 0.24 0.25
Current ratio 0.30 0.26 0.42
Net debt to EBITDA (0.17) 0.44 0.08

Dividend

Metric CINF PGR Insurance Property & Casualty median
Dividend yield 2.99% 1.71% 2.79%
Payout ratio 0.34 0.14 0.27

Size

Metric CINF PGR Insurance Property & Casualty median
Market cap 24.91b 117.67b 2.44b

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