American Financial Group (OTCMKTS: TKOMY) and Tokio Marine Holdings, Inc. Sponsored ADR common stock (OTCMKTS:TKOMY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Volatility & Risk

American Financial Group has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Tokio Marine Holdings, Inc. Sponsored ADR common stock has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for American Financial Group and Tokio Marine Holdings, Inc. Sponsored ADR common stock, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Financial Group 0 1 2 0 2.67
Tokio Marine Holdings, Inc. Sponsored ADR common stock 0 0 0 0 N/A

American Financial Group currently has a consensus price target of $120.50, indicating a potential upside of 6.63%. Given American Financial Group’s higher possible upside, equities analysts clearly believe American Financial Group is more favorable than Tokio Marine Holdings, Inc. Sponsored ADR common stock.

Profitability

This table compares American Financial Group and Tokio Marine Holdings, Inc. Sponsored ADR common stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Financial Group 7.50% 13.27% 1.14%
Tokio Marine Holdings, Inc. Sponsored ADR common stock 5.29% 7.86% 1.29%

Dividends

American Financial Group pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Tokio Marine Holdings, Inc. Sponsored ADR common stock pays an annual dividend of $1.17 per share and has a dividend yield of 2.5%. American Financial Group pays out 21.4% of its earnings in the form of a dividend. Tokio Marine Holdings, Inc. Sponsored ADR common stock pays out 32.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Financial Group has raised its dividend for 12 consecutive years.

Earnings & Valuation

This table compares American Financial Group and Tokio Marine Holdings, Inc. Sponsored ADR common stock’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Financial Group $6.87 billion 1.47 $475.00 million $6.55 17.25
Tokio Marine Holdings, Inc. Sponsored ADR common stock $49.83 billion 0.70 $2.56 billion $3.63 12.89

Tokio Marine Holdings, Inc. Sponsored ADR common stock has higher revenue and earnings than American Financial Group. Tokio Marine Holdings, Inc. Sponsored ADR common stock is trading at a lower price-to-earnings ratio than American Financial Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

62.0% of American Financial Group shares are owned by institutional investors. Comparatively, 0.1% of Tokio Marine Holdings, Inc. Sponsored ADR common stock shares are owned by institutional investors. 14.9% of American Financial Group shares are owned 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.

Summary

American Financial Group beats Tokio Marine Holdings, Inc. Sponsored ADR common stock on 12 of the 16 factors compared between the two stocks.

About American Financial Group

American Financial Group, Inc., through its subsidiaries, provides property and casualty insurance products in the United States. The company operates through Property and Casualty Insurance, Annuity, Run-Off Long-Term Care and Life, and Other segments. It offers property and transportation insurance products, such as physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products, and other property coverages; specialty casualty insurance, including primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, and specialty coverage in targeted markets and customized programs for small to mid-sized businesses; and specialty financial insurance products comprising risk management insurance programs for leasing and financing institutions, surety and fidelity products, and trade credit insurance. The company sells its property and casualty insurance products through independent insurance agents and brokers, as well as through employee agents. It also provides traditional fixed and fixed-indexed annuities to the retail, financial institutions, and education markets; and engages in the commercial real estate operations in Cincinnati, Whitefield, New Hampshire, Chesapeake Bay, Charleston, and Palm Beach. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio.

About Tokio Marine Holdings, Inc. Sponsored ADR common stock

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 2002 and is headquartered in Tokyo, Japan.

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