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 ($25.0B and $24.9B). Cincinnati Financial Corporation trades at the lower P/E: 7.6× against 13.7×. 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 (2.99% vs 1.72%). Across the 23 metrics below, Cincinnati Financial Corporation leads on 18 and W.R. Berkley Corporation on 5.

Valuation

Metric CINF WRB Insurance Property & Casualty median
P/E 7.58 13.66 10.29
P/S 1.80 1.75 1.17
P/B 1.50 2.64 1.83
Price to free cash flow 7.37 7.62 7.48
EV/EBITDA 5.54 10.60 7.49
EV/Sales 1.73 1.76 1.13
Earnings yield 13.19% 7.32% 9.50%
Free cash flow yield 13.57% 13.13% 13.29%

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% 17.59%
Return on equity 21.48% 20.14% 18.19%
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% 8.69%
EPS growth (last fiscal year) 4.40% 2.06% —
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 2.99% 1.72% 2.79%
Payout ratio 0.34 0.09 0.27

Size

Metric CINF WRB Insurance Property & Casualty median
Market cap 24.91b 24.98b 2.44b

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