Cincinnati Financial Corporation (CINF) vs W.R. Berkley Corporation (WRB)

Cincinnati Financial Corporation and W.R. Berkley Corporation are both Insurance Property & Casualty companies. Cincinnati Financial Corporation and W.R. Berkley Corporation are of similar size ($27.5B and $25.7B). Cincinnati Financial Corporation trades at the lower P/E: 8.0× against 15.3×. Cincinnati Financial Corporation grew revenue faster over the last twelve months: 19.6% against 4.27%. Cincinnati Financial Corporation has the higher net margin (23.8% vs 12.9%) and the higher return on invested capital (16.7% vs 15.7%). Both pay a dividend; Cincinnati Financial Corporation yields more (2.15% vs 0.25%). Across the 21 metrics below, Cincinnati Financial Corporation leads on 17 and W.R. Berkley Corporation on 4.

Valuation

Metric CINF WRB Insurance Property & Casualty median
P/E 7.99 15.34 10.75
P/S 1.89 1.96 1.21
P/B 1.58 2.97 1.99
Price to free cash flow 7.76 8.55 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 12.52% 6.52% 9.08%
Free cash flow yield 12.88% 11.70% 12.11%

Profitability

Metric CINF WRB Insurance Property & Casualty median
Gross margin 30.39% 47.56% 41.16%
Operating margin 30.16% 17.04% 15.09%
Net margin 23.84% 12.94% 11.51%
Free cash flow margin 24.37% 22.92% 17.46%
Return on equity 21.48% 20.14% 17.34%
Return on assets 8.11% 4.37% 3.74%
Return on invested capital 16.65% 15.74% 12.06%

Growth

Metric CINF WRB Insurance Property & Casualty median
Revenue growth (TTM) 19.55% 4.27% 8.02%
EPS growth (last fiscal year) 4.40% 2.06% 39.61%
Revenue growth, 5-year CAGR 10.88% 12.67% 9.23%
Net income growth, 5-year CAGR 14.50% 27.38% 10.09%

Health

Metric CINF WRB Insurance Property & Casualty median
Debt to equity 0.05 0.29 0.25
Current ratio 0.30 0.32 0.42
Net debt to EBITDA (0.17) 0.13 0.08

Dividend

Metric CINF WRB Insurance Property & Casualty median
Dividend yield 2.15% 0.25% 1.50%
Payout ratio 0.17 0.04 0.14

Size

Metric CINF WRB Insurance Property & Casualty median
Market cap 25.66b 27.46b 2.67b

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