Comparing American Financial Group (AFG) & Its Competitors

American Financial Group (NYSE:AFG) is one of 311 publicly-traded companies in the “Insurance” industry, but how does it contrast to its rivals? We will compare American Financial Group to similar businesses based on the strength of its profitability, dividends, risk, analyst recommendations, earnings, valuation and institutional ownership.

Insider and Institutional Ownership

64.4% of American Financial Group shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 16.9% of American Financial Group shares are held by insiders. Comparatively, 13.5% of shares of all “Insurance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares American Financial Group and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Financial Group	$8.17 billion	$842.00 million	13.12
American Financial Group Competitors	$15.41 billion	$1.70 billion	33.62

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

Dividends

American Financial Group pays an annual dividend of $3.88 per share and has a dividend yield of 2.4%. American Financial Group pays out 31.6% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 31.1% of their earnings in the form of a dividend. American Financial Group has increased its dividend for 19 consecutive years. American Financial Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

American Financial Group has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, American Financial Group’s rivals have a beta of -1.59, indicating that their average stock price is 259% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Financial Group and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Financial Group	0	2	2	0	2.50
American Financial Group Competitors	3341	15702	16545	743	2.40

American Financial Group presently has a consensus price target of $159.00, suggesting a potential downside of 1.15%. As a group, “Insurance” companies have a potential upside of 4.78%. Given American Financial Group’s rivals higher possible upside, analysts plainly believe American Financial Group has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Financial Group	11.96%	22.56%	3.21%
American Financial Group Competitors	8.69%	-9.86%	4.10%

Summary

American Financial Group rivals beat American Financial Group on 8 of the 15 factors compared.

American Financial Group Company Profile

American Financial Group, Inc. is an insurance holding company headquartered in Cincinnati, Ohio. Through Great American Insurance Group, it provides property and casualty insurance, with a focus on specialty commercial markets and coverage tailored to specific industries and customer needs. Its products include insurance for businesses, farms and agricultural operations, and individuals, offered through a network of independent agents and brokers. AFG’s insurance operations serve customers primarily in the United States, with some products and services available internationally.