Cincinnati Financial Corporation (CINF) vs The Travelers Companies, Inc. (TRV)

Cincinnati Financial Corporation and The Travelers Companies, Inc. are both Insurance Property & Casualty companies. The Travelers Companies, Inc. is the larger, with a market value of $75.6B against $24.9B — 3.0× the size. Cincinnati Financial Corporation trades at the lower P/E: 7.6× against 9.6×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 19.6% against 2.39%. Cincinnati Financial Corporation has the higher net margin (23.8% vs 16.8%) and the higher return on invested capital (16.7% vs 16.2%). Both pay a dividend; Cincinnati Financial Corporation yields more (2.99% vs 1.94%). Across the 23 metrics below, Cincinnati Financial Corporation leads on 15 and The Travelers Companies, Inc. on 8.

Valuation

Metric CINF TRV Insurance Property & Casualty median
P/E 7.58 9.58 10.29
P/S 1.80 1.56 1.17
P/B 1.50 2.31 1.83
Price to free cash flow 7.37 6.97 7.48
EV/EBITDA 5.54 4.53 7.49
EV/Sales 1.73 1.73 1.13
Earnings yield 13.19% 10.44% 9.50%
Free cash flow yield 13.57% 14.35% 13.29%

Profitability

Metric CINF TRV Insurance Property & Casualty median
Gross margin 30.39% 49.51% 41.16%
Operating margin 30.16% 22.03% 15.09%
Net margin 23.84% 16.83% 11.51%
Free cash flow margin 24.37% 22.40% 17.59%
Return on equity 21.48% 26.32% 18.19%
Return on assets 8.11% 5.84% 3.74%
Return on invested capital 16.65% 16.22% 12.06%

Growth

Metric CINF TRV Insurance Property & Casualty median
Revenue growth (TTM) 19.55% 2.39% 8.69%
EPS growth (last fiscal year) 4.40% 27.76% —
Revenue growth, 5-year CAGR 10.88% 8.83% 9.23%
Net income growth, 5-year CAGR 14.50% 18.44% 10.09%

Health

Metric CINF TRV Insurance Property & Casualty median
Debt to equity 0.05 0.27 0.25
Current ratio 0.30 0.27 0.42
Net debt to EBITDA (0.17) 0.52 0.08

Dividend

Metric CINF TRV Insurance Property & Casualty median
Dividend yield 2.99% 1.94% 2.79%
Payout ratio 0.34 0.40 0.27

Size

Metric CINF TRV Insurance Property & Casualty median
Market cap 24.91b 75.59b 2.44b

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