Cincinnati Financial Corporation (NASDAQ: CINF) is one of 85 public companies in the “Property & Casualty Insurance” industry, but how does it weigh in compared to its competitors? We will compare Cincinnati Financial Corporation to related companies based on the strength of its institutional ownership, earnings, analyst recommendations, risk, valuation, dividends and profitability.

Risk & Volatility

Cincinnati Financial Corporation has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Cincinnati Financial Corporation’s competitors have a beta of 0.90, meaning that their average stock price is 10% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cincinnati Financial Corporation 8.93% 5.85% 2.03%
Cincinnati Financial Corporation Competitors 6.26% 1.72% 1.30%

Insider & Institutional Ownership

62.2% of Cincinnati Financial Corporation shares are owned by institutional investors. Comparatively, 59.4% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 9.3% of Cincinnati Financial Corporation shares are owned by company insiders. Comparatively, 15.7% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cincinnati Financial Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Financial Corporation 0 4 1 0 2.20
Cincinnati Financial Corporation Competitors 569 2223 2187 45 2.34

Cincinnati Financial Corporation presently has a consensus price target of $77.33, indicating a potential upside of 6.43%. As a group, “Property & Casualty Insurance” companies have a potential upside of 7.13%. Given Cincinnati Financial Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Cincinnati Financial Corporation has less favorable growth aspects than its competitors.

Dividends

Cincinnati Financial Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 2.8%. Cincinnati Financial Corporation 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 23.0% of their earnings in the form of a dividend. Cincinnati Financial Corporation has raised its dividend for 56 consecutive years.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Cincinnati Financial Corporation $5.45 billion $591.00 million 24.06
Cincinnati Financial Corporation Competitors $11.51 billion $1.16 billion 152.62

Cincinnati Financial Corporation’s competitors have higher revenue and earnings than Cincinnati Financial Corporation. Cincinnati Financial Corporation 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 Corporation competitors beat Cincinnati Financial Corporation on 9 of the 15 factors compared.

About Cincinnati Financial Corporation

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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