Comparing Cincinnati Financial (CINF) and Its Peers
Cincinnati Financial (NASDAQ: CINF) is one of 84 publicly-traded companies in the “Property & Casualty Insurance” industry, but how does it contrast to its competitors? We will compare Cincinnati Financial to similar businesses based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, valuation, risk and dividends.
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 Competitors||6.02%||1.49%||1.21%|
Cincinnati Financial has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Cincinnati Financial’s competitors have a beta of 0.89, meaning that their average share price is 12% less volatile than the S&P 500.
Institutional and Insider Ownership
64.4% 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for Cincinnati Financial and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cincinnati Financial Competitors||639||2333||2214||49||2.32|
Cincinnati Financial presently has a consensus target price of $77.33, indicating a potential upside of 5.29%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.44%. Given Cincinnati Financial’s higher probable upside, analysts plainly believe Cincinnati Financial is more favorable than its competitors.
Earnings & Valuation
This table compares Cincinnati Financial and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Cincinnati Financial||$5.45 billion||$591.00 million||24.32|
|Cincinnati Financial Competitors||$11.51 billion||$1.16 billion||159.93|
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.
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 1.4% and pay out 15.3% of their earnings in the form of a dividend. Cincinnati Financial has increased its dividend for 56 consecutive years.
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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