uploads/2015/11/afg-pbv.jpg

How Does American Financial Group Compare to Its Peers?

By

Updated

American Financial Group and its peers

In this article, we’ll compare American Financial Group to its industry peers on various measures:

  • The PE (price-to-earnings) ratios of American Financial Group (AFG), MetLife (MET), The Travelers Companies (TRV), Loews Corporation (L), and CNA Financial Corporation (CNA) are 16.1x, 8.7x, 10.2x, 20.7x, and 12.8x, respectively.

  • The PBV (price-to-book value) ratios of American Financial Group, MetLife, The Travelers Companies, Loews Corporation, and CNA Financial Corporation are 1.3x, 0.83x, 1.5x, 0.73x, and 0.81x, respectively.

Thus, American Financial Group has outperformed most of its peers based on PE and PBV ratios.

Article continues below advertisement

ETFs that invest in American Financial Group

The PowerShares KBW Property & Casualty Insurance Portfolio (KBWP) invests 4.5% of its holdings in American Financial Group. The ETF tracks a market cap–weighted index focused exclusively on property and casualty insurance companies.

The SPDR S&P Insurance ETF (KIE) invests 2.1% of its holdings in American Financial Group. The ETF tracks an equal-weighted index of insurance companies, as defined by the GICS (global industry classification standard).

The PowerShares S&P MidCap Low Volatility Portfolio (XMLV) invests 1.6% of its holdings in AFG. The ETF tracks a volatility-weighted index of the 80 least volatile S&P MidCap 400 companies.

Comparing American Financial Group and its ETFs

Below is a comparison of American Financial Group and its ETFs:

  • The YTD (year-to-date) price movements of American Financial Group, KBWP, KIE, and XMLV are 20.9%, 15.8%, 9.2%, and 6.2x, respectively.
  • The PE ratios of AFG, KBWP, KIE, and XMLV are 16.1x, 11.0x, 12.5x, and 20.2x, respectively.
  • The PBV ratios of AFG , KBWP, KIE, and XMLV are 1.3x, 1.3x, 1.0x, and 2.2x, respectively.

Thus, American Financial Group has outperformed most of its ETFs based on price movement and PE ratio.

Advertisement

More From Market Realist