Head to Head Contrast: CNA Financial (CNA) versus Its Peers

CNA Financial (NYSE:CNA) is one of 311 public companies in the “Insurance” industry, but how does it weigh in compared to its competitors? We will compare CNA Financial to related companies based on the strength of its earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

CNA Financial pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. CNA Financial pays out 50.7% of its earnings in the form of a dividend. As a group, “Insurance” companies pay a dividend yield of 2.9% and pay out 30.4% of their earnings in the form of a dividend. CNA Financial has raised its dividend for 9 consecutive years.

Profitability

This table compares CNA Financial and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNA Financial	6.80%	9.74%	1.55%
CNA Financial Competitors	9.05%	-9.83%	4.11%

Valuation & Earnings

This table compares CNA Financial and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CNA Financial	$14.89 billion	$1.28 billion	12.48
CNA Financial Competitors	$15.62 billion	$1.70 billion	34.41

CNA Financial’s competitors have higher revenue and earnings than CNA Financial. CNA 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.

Institutional and Insider Ownership

98.4% of CNA Financial shares are held by institutional investors. Comparatively, 55.8% of shares of all “Insurance” companies are held by institutional investors. 0.3% of CNA Financial shares are held by company insiders. Comparatively, 13.6% of shares of all “Insurance” companies 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.

Risk and Volatility

CNA Financial has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, CNA Financial’s competitors have a beta of -1.59, suggesting that their average stock price is 259% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for CNA Financial and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNA Financial	0	1	1	0	2.50
CNA Financial Competitors	3331	15664	16518	740	2.40

As a group, “Insurance” companies have a potential upside of 5.92%. Given CNA Financial’s competitors higher probable upside, analysts clearly believe CNA Financial has less favorable growth aspects than its competitors.

Summary

CNA Financial competitors beat CNA Financial on 9 of the 15 factors compared.

CNA Financial Company Profile

CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.