Cincinnati Financial (NASDAQ: CINF) is one of 83 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 analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Institutional and Insider Ownership

64.6% of Cincinnati Financial shares are owned by institutional investors. Comparatively, 60.2% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 9.3% of Cincinnati Financial 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 is poised for long-term growth.

Dividends

Cincinnati Financial pays an annual dividend of $2.00 per share and has a dividend yield of 2.8%. 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 raised its dividend for 56 consecutive years.

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%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Cincinnati Financial $5.45 billion $591.00 million 24.06
Cincinnati Financial Competitors $11.51 billion $1.16 billion 165.76

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.

Volatility and Risk

Cincinnati Financial has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Cincinnati Financial’s competitors have a beta of 0.88, meaning that their average stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cincinnati Financial and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Financial 0 4 1 0 2.20
Cincinnati Financial Competitors 638 2322 2196 49 2.32

Cincinnati Financial presently has a consensus target price of $77.33, suggesting a potential upside of 6.45%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.19%. Given Cincinnati Financial’s higher possible upside, equities analysts plainly believe Cincinnati Financial is more favorable than its competitors.

Summary

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

About Cincinnati Financial

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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