American Financial Group (NYSE: AFG) is one of 92 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its peers? We will compare American Financial Group to similar companies based on the strength of its institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

American Financial Group has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, American Financial Group’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

62.3% of American Financial Group shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 13.7% of American Financial Group shares are owned by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares American Financial Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Financial Group $6.49 billion $1.16 billion 11.80
American Financial Group Competitors $11.75 billion $2.00 billion 36.35

American Financial Group’s peers have higher revenue and earnings than American Financial Group. American Financial Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

American Financial Group pays an annual dividend of $1.25 per share and has a dividend yield of 1.2%. American Financial Group pays out 14.1% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.4% and pay out 26.8% of their earnings in the form of a dividend. American Financial Group has increased its dividend for 11 consecutive years.

Profitability

This table compares American Financial Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Financial Group 11.89% 11.66% 1.07%
American Financial Group Competitors 10.09% 5.29% 2.71%

Analyst Ratings

This is a summary of current ratings and price targets for American Financial Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Financial Group 0 2 1 0 2.33
American Financial Group Competitors 602 2244 2125 42 2.32

American Financial Group currently has a consensus price target of $93.00, indicating a potential downside of 11.31%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.48%. Given American Financial Group’s peers higher possible upside, analysts clearly believe American Financial Group has less favorable growth aspects than its peers.

Summary

American Financial Group peers beat American Financial Group on 10 of the 15 factors compared.

American Financial Group Company Profile

American Financial Group, Inc. (AFG) is a holding company engaged primarily in property and casualty insurance businesses. The Company, through Great American Insurance Group, focuses on commercial products for businesses, and is engaged in the sale of fixed and fixed-indexed annuities in the retail, financial institutions and education markets. It has four segments: Property and casualty insurance, Annuity, Run-off long-term care and life, and Other. It reports its property and casualty insurance business in specialty sub-segments, including Property and transportation, Specialty casualty and Specialty financial. AFG sells traditional fixed and fixed-indexed annuities in the retail, financial institutions and education markets through independent producers and through direct relationships with certain financial institutions. AFG also sells single premium annuities in financial institutions through direct relationships with certain banks and through independent agents and brokers.

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