Head to Head Review: Cincinnati Financial (NASDAQ:CINF) vs. China Pacific Insurance (Group) (OTCMKTS:CHPXY)

Cincinnati Financial (NASDAQ:CINF) and China Pacific Insurance (Group) (OTCMKTS:CHPXY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.

Profitability

This table compares Cincinnati Financial and China Pacific Insurance (Group)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cincinnati Financial	23.84%	9.63%	3.70%
China Pacific Insurance (Group)	N/A	N/A	N/A

Valuation & Earnings

This table compares Cincinnati Financial and China Pacific Insurance (Group)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cincinnati Financial	$12.63 billion	2.08	$2.39 billion	$21.20	8.09
China Pacific Insurance (Group)	N/A	N/A	N/A	N/A	N/A

Cincinnati Financial has higher revenue and earnings than China Pacific Insurance (Group).

Institutional and Insider Ownership

65.2% of Cincinnati Financial shares are held by institutional investors. 2.9% of Cincinnati Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Cincinnati Financial and China Pacific Insurance (Group), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cincinnati Financial	0	3	1	1	2.60
China Pacific Insurance (Group)	0	0	0	0	0.00

Cincinnati Financial currently has a consensus target price of $195.40, suggesting a potential upside of 13.99%. Given Cincinnati Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Cincinnati Financial is more favorable than China Pacific Insurance (Group).

Summary

Cincinnati Financial beats China Pacific Insurance (Group) on 10 of the 10 factors compared between the two stocks.

About Cincinnati Financial

Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. It operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. It also provides contract and commercial surety bonds, and fidelity bonds; and machinery and equipment. The Personal Lines Insurance segment offers personal auto insurance; homeowner insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products, as well as other coverages, including miscellaneous errors and omissions, professional liability, and excess liability; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to various causes, such as fire, wind, hail, water, theft, and vandalism. The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life; and whole life insurance products, as well as annuities. The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, redeemable preferred stocks, and mortgage-backed securities; and equity investments comprising common and nonredeemable preferred stocks. It also offers commercial leasing and financing services; and insurance brokerage services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.

About China Pacific Insurance (Group)

China Pacific Insurance (Group) Co., Ltd., together with its subsidiaries, offers insurance products in the People's Republic of China. It operates through Life and Health Insurance, Property and Casualty Insurance, and Other Businesses segments. The company offers life, health, and accident insurance products, etc.; liability insurance; credit and guarantee insurance; short-term health insurance and casualty insurance; property insurance; agricultural insurance; and individual and group pension and annuity products, as well as insurance funds investment and reinsurance services. It is also involved in the management of capital and insurance funds; outsourcing of fund management; and other asset management activities, as well as provision of advisory services relating to asset management. In addition, the company is involved in the property management and construction; real estate activities; elderly service and medical consulting services; and seniors and disabled care services. It sells its products directly, as well as through insurance agents and brokers, bancassurance, telemarketing, and internet Sales. The company was founded in 1991 and is headquartered in Shanghai, the People's Republic of China.