AFG vs. BAM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFG and BAM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BAM’s market capitalization of 91.61 billion USD is significantly greater than AFG’s 10.64 billion USD, highlighting its more substantial market valuation.
BAM carries a higher beta at 1.87, indicating it’s more sensitive to market moves, while AFG (beta: 0.71) exhibits greater stability.
| Symbol | AFG | BAM |
|---|---|---|
| Company Name | American Financial Group, Inc. | Brookfield Asset Management Ltd. |
| Country | US | CA |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Property & Casualty | Asset Management |
| CEO | Stephen Craig Lindner | James Bruce Flatt |
| Price | 127.43 USD | 56.81 USD |
| Market Cap | 10.64 billion USD | 91.61 billion USD |
| Beta | 0.71 | 1.87 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | December 1, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFG and BAM by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AFG
17.81%
Insurance - Property & Casualty Industry
- Max
- 28.14%
- Q3
- 17.51%
- Median
- 12.75%
- Q1
- 8.26%
- Min
- 0.61%
In the upper quartile for the Insurance - Property & Casualty industry, AFG’s Return on Equity of 17.81% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
BAM
22.44%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
In the upper quartile for the Asset Management industry, BAM’s Return on Equity of 22.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AFG
27.67%
Insurance - Property & Casualty Industry
- Max
- 21.89%
- Q3
- 10.09%
- Median
- 3.90%
- Q1
- 0.89%
- Min
- -7.26%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Property & Casualty industry.
BAM
6.62%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
BAM’s Return on Invested Capital of 6.62% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AFG
13.06%
Insurance - Property & Casualty Industry
- Max
- 21.98%
- Q3
- 13.09%
- Median
- 9.18%
- Q1
- 6.10%
- Min
- 2.13%
AFG’s Net Profit Margin of 13.06% is aligned with the median group of its peers in the Insurance - Property & Casualty industry. This indicates its ability to convert revenue into profit is typical for the sector.
BAM
65.26%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
A Net Profit Margin of 65.26% places BAM in the upper quartile for the Asset Management industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AFG
14.02%
Insurance - Property & Casualty Industry
- Max
- 31.70%
- Q3
- 17.32%
- Median
- 12.57%
- Q1
- 7.38%
- Min
- 4.31%
AFG’s Operating Profit Margin of 14.02% is around the midpoint for the Insurance - Property & Casualty industry, indicating that its efficiency in managing core business operations is typical for the sector.
BAM
54.57%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
BAM’s Operating Profit Margin of 54.57% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AFG | BAM |
|---|---|---|
| Return on Equity (TTM) | 17.81% | 22.44% |
| Return on Assets (TTM) | 2.64% | 6.82% |
| Return on Invested Capital (TTM) | 27.67% | 6.62% |
| Net Profit Margin (TTM) | 13.06% | 65.26% |
| Operating Profit Margin (TTM) | 14.02% | 54.57% |
| Gross Profit Margin (TTM) | 69.59% | 60.27% |
Financial Strength
Current Ratio
AFG
--
Insurance - Property & Casualty Industry
- Max
- 51.52
- Q3
- 30.84
- Median
- 20.50
- Q1
- 6.61
- Min
- 0.41
Current Ratio data for AFG is currently unavailable.
BAM
1.68
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
BAM’s Current Ratio of 1.68 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AFG
0.34
Insurance - Property & Casualty Industry
- Max
- 0.58
- Q3
- 0.36
- Median
- 0.27
- Q1
- 0.14
- Min
- 0.01
AFG’s Debt-to-Equity Ratio of 0.34 is typical for the Insurance - Property & Casualty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
BAM
0.08
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Falling into the lower quartile for the Asset Management industry, BAM’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
AFG
11.29
Insurance - Property & Casualty Industry
- Max
- 39.40
- Q3
- 22.24
- Median
- 12.38
- Q1
- 6.68
- Min
- -12.40
AFG’s Interest Coverage Ratio of 11.29 is positioned comfortably within the norm for the Insurance - Property & Casualty industry, indicating a standard and healthy capacity to cover its interest payments.
BAM
2.89
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
BAM’s Interest Coverage Ratio of 2.89 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFG | BAM |
|---|---|---|
| Current Ratio (TTM) | -- | 1.68 |
| Quick Ratio (TTM) | -- | 1.68 |
| Debt-to-Equity Ratio (TTM) | 0.34 | 0.08 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.31 | 0.21 |
| Interest Coverage Ratio (TTM) | 11.29 | 2.89 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFG and BAM. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AFG
7.15%
Insurance - Property & Casualty Industry
- Max
- 8.17%
- Q3
- 3.10%
- Median
- 1.79%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 7.15%, AFG offers a more attractive income stream than most of its peers in the Insurance - Property & Casualty industry, signaling a strong commitment to shareholder returns.
BAM
2.88%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
BAM’s Dividend Yield of 2.88% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AFG
94.24%
Insurance - Property & Casualty Industry
- Max
- 115.20%
- Q3
- 35.27%
- Median
- 22.19%
- Q1
- 3.16%
- Min
- 0.00%
AFG’s Dividend Payout Ratio of 94.24% is in the upper quartile for the Insurance - Property & Casualty industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
BAM
35.41%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
BAM’s Dividend Payout Ratio of 35.41% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AFG | BAM |
|---|---|---|
| Dividend Yield (TTM) | 7.15% | 2.88% |
| Dividend Payout Ratio (TTM) | 94.24% | 35.41% |
Valuation
Price-to-Earnings Ratio
AFG
13.36
Insurance - Property & Casualty Industry
- Max
- 35.83
- Q3
- 23.28
- Median
- 14.49
- Q1
- 11.91
- Min
- 4.47
AFG’s P/E Ratio of 13.36 is within the middle range for the Insurance - Property & Casualty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
BAM
89.87
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 89.87, BAM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
AFG
1.41
Insurance - Property & Casualty Industry
- Max
- 2.53
- Q3
- 1.90
- Median
- 1.33
- Q1
- 0.86
- Min
- 0.01
AFG’s Forward PEG Ratio of 1.41 is within the middle range of its peers in the Insurance - Property & Casualty industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BAM
5.69
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
A Forward PEG Ratio of 5.69 places BAM in the upper quartile for the Asset Management industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AFG
1.74
Insurance - Property & Casualty Industry
- Max
- 3.76
- Q3
- 2.39
- Median
- 1.80
- Q1
- 1.01
- Min
- 0.50
The P/S Ratio is often not a primary valuation tool in the Insurance - Property & Casualty industry.
BAM
58.61
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
With a P/S Ratio of 58.61, BAM trades at a valuation that eclipses even the highest in the Asset Management industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AFG
2.43
Insurance - Property & Casualty Industry
- Max
- 5.34
- Q3
- 2.95
- Median
- 1.92
- Q1
- 1.31
- Min
- 0.52
AFG’s P/B Ratio of 2.43 is within the conventional range for the Insurance - Property & Casualty industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
BAM
10.80
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | AFG | BAM |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.36 | 89.87 |
| Forward PEG Ratio (TTM) | 1.41 | 5.69 |
| Price-to-Sales Ratio (P/S, TTM) | 1.74 | 58.61 |
| Price-to-Book Ratio (P/B, TTM) | 2.43 | 10.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 7.47 | -223.37 |
| EV-to-EBITDA (TTM) | 16.68 | 64.32 |
| EV-to-Sales (TTM) | 1.77 | 58.81 |