Cincinnati Financial (NASDAQ: CINF) is one of 84 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its competitors? We will compare Cincinnati Financial to related companies based on the strength of its dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Cincinnati Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cincinnati Financial 8.93% 5.85% 2.03%
Cincinnati Financial Competitors 6.08% 1.54% 1.23%

Insider and Institutional Ownership

64.6% of Cincinnati Financial shares are held by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are held by institutional investors. 9.3% of Cincinnati Financial shares are held by insiders. Comparatively, 15.7% of shares of all “Property & Casualty Insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Cincinnati Financial and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Financial 0 4 1 0 2.20
Cincinnati Financial Competitors 638 2327 2202 49 2.32

Cincinnati Financial currently has a consensus target price of $77.33, indicating a potential upside of 4.96%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.31%. Given Cincinnati Financial’s higher possible upside, research analysts plainly believe Cincinnati Financial is more favorable than its competitors.

Risk and Volatility

Cincinnati Financial has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Cincinnati Financial’s competitors have a beta of 0.89, indicating that their average stock price is 11% less volatile than the S&P 500.

Dividends

Cincinnati Financial pays an annual dividend of $2.00 per share and has a dividend yield of 2.7%. Cincinnati Financial pays out 66.2% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 14.7% of their earnings in the form of a dividend. Cincinnati Financial has increased its dividend for 56 consecutive years.

Valuation and Earnings

This table compares Cincinnati Financial and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cincinnati Financial $5.45 billion $591.00 million 24.40
Cincinnati Financial Competitors $11.51 billion $1.16 billion 153.16

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

Summary

Cincinnati Financial competitors beat Cincinnati Financial on 8 of the 15 factors compared.

Cincinnati Financial Company Profile

Cincinnati Financial Corporation is an insurance holding company. It operates through five segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, and Life insurance and Investments. Its Commercial Lines Insurance Segment provides five commercial business lines: commercial casualty, commercial property, commercial auto, workers’ compensation and other commercial lines. Its personal lines property insurance segment writes personal lines coverage in accounts that include both auto and homeowner coverages, as well as coverages that are part of its other personal business line. The excess and surplus lines Insurance segment covers business risks with characteristics, such as the nature of the business or its claim history that are difficult to profitably insure in the standard commercial lines market. The life insurance business lines include term life insurance, universal life insurance, worksite products and whole life insurance.

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