Head to Head Comparison: American Financial Group (NYSE:AFG) & Admiral Group (OTCMKTS:AMIGY)

American Financial Group (NYSE:AFG) and Admiral Group (OTCMKTS:AMIGY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares American Financial Group and Admiral Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Financial Group	10.89%	22.14%	3.03%
Admiral Group	N/A	N/A	N/A

Insider and Institutional Ownership

64.4% of American Financial Group shares are held by institutional investors. Comparatively, 0.0% of Admiral Group shares are held by institutional investors. 14.6% of American Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

American Financial Group pays an annual dividend of $2.84 per share and has a dividend yield of 2.2%. Admiral Group pays an annual dividend of $0.69 per share and has a dividend yield of 2.1%. American Financial Group pays out 28.3% of its earnings in the form of a dividend. Admiral Group pays out 64.8% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares American Financial Group and Admiral Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Financial Group	$7.83 billion	1.36	$852.00 million	$10.05	12.67
Admiral Group	N/A	N/A	N/A	$1.07	31.38

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for American Financial Group and Admiral Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Financial Group	0	2	2	0	2.50
Admiral Group	1	1	0	0	1.50

American Financial Group presently has a consensus price target of $133.50, indicating a potential upside of 4.86%. Given American Financial Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Financial Group is more favorable than Admiral Group.

Summary

American Financial Group beats Admiral Group on 12 of the 13 factors compared between the two stocks.

About American Financial Group

American Financial Group, Inc., an insurance holding company, provides specialty property and casualty insurance products in the United States. The company offers property and transportation insurance products, such as physical damage and liability coverage for buses and trucks, inland and ocean marine, agricultural-related products, and other commercial property and specialty transportation coverages; specialty casualty insurance, including primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers' compensation insurance; and specialty financial insurance products comprising risk management insurance programs for lending and leasing institutions, fidelity and surety products, and trade credit insurance. It sells its property and casualty insurance products through independent insurance agents and brokers. The company was founded in 1872 and is headquartered in Cincinnati, Ohio.

About Admiral Group

Admiral Group plc, a financial services company, provides insurance and personal lending products in the United Kingdom, France, Italy, Spain, and the United States. It operates through four segments: UK Insurance, International Insurance, Admiral Money, and Other. The company offers underwriting services, which includes motor, household, pet, travel, and other insurance, as well as car and home insurance; and unsecured personal loans and car finance products. It provides its insurance product and services under the Admiral, Admiral Business, Admiral Money, Admiral Pioneer, Apparent Insurance, Balumba, Bell, Connect by Admiral, ConTe.it Assicurazioni, ConTe.it Prestiti, Diamond, Elephant, Elephant Auto, Gladiator, L'olivier assurance, Qualitas Auto, and Veygo brand names. Admiral Group plc was founded in 1993 and is headquartered in Cardiff, the United Kingdom.