[ad_1]
Cincinnati Financial (NASDAQ:CINF – Get Rating) and Palomar (NASDAQ:PLMR – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Valuation & Earnings
This table compares Cincinnati Financial and Palomar’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cincinnati Financial | $9.63 billion | 1.98 | $2.95 billion | $12.59 | 9.42 |
| Palomar | $247.79 million | 6.25 | $45.85 million | $1.68 | 36.61 |
Cincinnati Financial has higher revenue and earnings than Palomar. Cincinnati Financial is trading at a lower price-to-earnings ratio than Palomar, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Cincinnati Financial and Palomar, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cincinnati Financial | 0 | 1 | 1 | 0 | 2.50 |
| Palomar | 0 | 0 | 5 | 0 | 3.00 |
Cincinnati Financial currently has a consensus price target of $139.00, indicating a potential upside of 17.16%. Palomar has a consensus price target of $80.80, indicating a potential upside of 31.38%. Given Palomar’s stronger consensus rating and higher probable upside, analysts plainly believe Palomar is more favorable than Cincinnati Financial.
Institutional & Insider Ownership
66.3% of Cincinnati Financial shares are owned by institutional investors. Comparatively, 89.4% of Palomar shares are owned by institutional investors. 3.0% of Cincinnati Financial shares are owned by insiders. Comparatively, 4.4% of Palomar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Cincinnati Financial and Palomar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cincinnati Financial | 23.82% | 8.79% | 3.54% |
| Palomar | 15.82% | 13.53% | 5.76% |
Risk and Volatility
Cincinnati Financial has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Palomar has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
Summary
Palomar beats Cincinnati Financial on 9 of the 14 factors compared between the two stocks.
About Cincinnati Financial (Get Rating)
Cincinnati Financial Corporation, together with its subsidiaries, provides property casualty insurance products in the United States. The company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment offers coverage for commercial casualty, commercial property, commercial auto, and workers’ compensation. It also provides director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; and machinery and equipment coverage. The Personal Lines Insurance segment offers personal auto insurance; homeowner insurance; and dwelling fire, inland marine, personal umbrella liability, and watercraft coverages to individuals. The Excess and Surplus Lines Insurance segment offers commercial casualty insurance that covers businesses for third-party liability from accidents occurring on their premises or arising out of their operations, such as injuries sustained from products; and commercial property insurance, which insures buildings, inventory, equipment, and business income from loss or damage due to various causes, such as fire, wind, hail, water, theft, and vandalism. The Life Insurance segment provides term life insurance products; universal life insurance products; worksite products, such as term life; and whole life insurance products. The Investments segment invests in fixed-maturity investments, including taxable and tax-exempt bonds, and redeemable preferred stocks; and equity investments comprising common and nonredeemable preferred stocks. The company also offers commercial leasing and financing services; and insurance brokerage services. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.
About Palomar (Get Rating)
Palomar Holdings, Inc., an insurance holding company, provides specialty property insurance to residential and commercial customers. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance, commercial flood, real estate error and omission, and real estate investor products. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.
Receive News & Ratings for Cincinnati Financial Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Cincinnati Financial and related companies with MarketBeat.com’s FREE daily email newsletter.
[ad_2]
Source link
