Comparing Cincinnati Financial (CINF) and Its Peers

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

Profitability

This table compares Cincinnati Financial and its peers’ 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 6.39% 1.63% 1.28%

Analyst Recommendations

This is a breakdown of recent ratings for Cincinnati Financial and its peers, 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 573 2234 2203 49 2.34

Cincinnati Financial presently has a consensus target price of $77.33, indicating a potential upside of 3.94%. As a group, “Property & Casualty Insurance” companies have a potential upside of 0.27%. Given Cincinnati Financial’s higher possible upside, research analysts clearly believe Cincinnati Financial is more favorable than its peers.

Insider and Institutional 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, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

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 peers have a beta of 0.89, meaning that their average stock price is 11% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cincinnati Financial and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cincinnati Financial $5.45 billion $591.00 million 24.64
Cincinnati Financial Competitors $11.51 billion $1.16 billion 157.42

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

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 14.6% of their earnings in the form of a dividend. Cincinnati Financial has raised its dividend for 56 consecutive years.

Summary

Cincinnati Financial peers 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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