Head-To-Head Review: Cincinnati Financial (CINF) and 1347 Property Insurance (PIH)

Cincinnati Financial (NASDAQ: PIH) and 1347 Property Insurance (NASDAQ:PIH) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Cincinnati Financial and 1347 Property Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cincinnati Financial 16.59% 6.36% 2.32%
1347 Property Insurance 2.51% 3.68% 1.37%



Risk and Volatility

Cincinnati Financial has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, 1347 Property Insurance has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Dividends

Cincinnati Financial pays an annual dividend of $2.12 per share and has a dividend yield of 2.7%. 1347 Property Insurance does not pay a dividend. Cincinnati Financial pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cincinnati Financial has raised its dividend for 57 consecutive years.

Insider and Institutional Ownership

62.2% of Cincinnati Financial shares are held by institutional investors. Comparatively, 25.3% of 1347 Property Insurance shares are held by institutional investors. 9.3% of Cincinnati Financial shares are held by company insiders. Comparatively, 47.2% of 1347 Property Insurance shares are held 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.

Valuation and Earnings

This table compares Cincinnati Financial and 1347 Property Insurance’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 $5.73 billion 2.21 $1.05 billion $2.74 28.38
1347 Property Insurance $38.15 million 0.98 $290,000.00 $0.13 48.08

Cincinnati Financial has higher revenue and earnings than 1347 Property Insurance. Cincinnati Financial is trading at a lower price-to-earnings ratio than 1347 Property Insurance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Cincinnati Financial and 1347 Property Insurance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cincinnati Financial 1 3 0 0 1.75
1347 Property Insurance 0 0 1 0 3.00

Cincinnati Financial presently has a consensus price target of $70.00, indicating a potential downside of 9.99%. 1347 Property Insurance has a consensus price target of $9.00, indicating a potential upside of 44.00%. Given 1347 Property Insurance’s stronger consensus rating and higher possible upside, analysts plainly believe 1347 Property Insurance is more favorable than Cincinnati Financial.

Summary

Cincinnati Financial beats 1347 Property Insurance on 11 of the 17 factors compared between the two stocks.

Cincinnati Financial Company Profile

Cincinnati Financial Corporation provides property casualty insurance products in the United States. The company operates in five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. The Commercial Lines Insurance segment provides coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. It also offers director and officer liability insurance, contract and commercial surety bonds, and fidelity bonds; coverage for property, liability, and business interruption; and machinery and equipment coverage. The Personal Lines Insurance segment provides personal auto insurance; homeowners 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 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, whole life, and disability insurance offered to employees through their employer; and whole life insurance products, as well as markets disability income insurance, deferred annuities, and immediate annuities. 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. Cincinnati Financial Corporation was founded in 1950 and is headquartered in Fairfield, Ohio.

1347 Property Insurance Company Profile

1347 Property Insurance Holdings, Inc., through its subsidiaries, provides property and casualty insurance products to individuals in Louisiana, Florida, and Texas. The company offers homeowners' insurance, manufactured home insurance, dwelling fire insurance, and wind/hail insurance products, as well as reinsurance products. It offers its insurance policies through a network of independent agents. The company was formerly known as Maison Insurance Holdings, Inc. and changed its name to 1347 Property Insurance Holdings, Inc. in March 2014. 1347 Property Insurance Holdings, Inc. was founded in 2012 and is based in Tampa, Florida.

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