Seek Returns logo

AFG vs. BAM: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AFG and BAM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAFGBAM
Company NameAmerican Financial Group, Inc.Brookfield Asset Management Ltd.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization11.73 billion USD82.61 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980December 1, 2022
Security TypeCommon StockCommon Stock

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.

AFG vs. BAM: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAFGBAM
5-Day Price Return-2.44%-3.64%
13-Week Price Return6.52%-16.04%
26-Week Price Return13.83%-11.59%
52-Week Price Return-2.20%-8.87%
Month-to-Date Return5.48%-4.62%
Year-to-Date Return1.43%-4.85%
10-Day Avg. Volume0.56M3.44M
3-Month Avg. Volume0.47M2.04M
3-Month Volatility22.52%27.59%
Beta0.681.85

Profitability

Return on Equity (TTM)

AFG

17.63%

Insurance Industry

Max
31.64%
Q3
19.22%
Median
14.77%
Q1
10.48%
Min
2.20%

AFG’s Return on Equity of 17.63% is on par with the norm for the Insurance industry, indicating its profitability relative to shareholder equity is typical for the sector.

BAM

23.79%

Capital Markets Industry

Max
41.61%
Q3
22.56%
Median
13.62%
Q1
9.23%
Min
-4.25%

In the upper quartile for the Capital Markets industry, BAM’s Return on Equity of 23.79% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AFG vs. BAM: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

AFG

9.70%

Insurance Industry

Max
28.47%
Q3
15.63%
Median
10.40%
Q1
6.94%
Min
-3.51%

AFG’s Net Profit Margin of 9.70% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

BAM

55.57%

Capital Markets Industry

Max
69.91%
Q3
36.88%
Median
24.30%
Q1
13.14%
Min
-6.20%

A Net Profit Margin of 55.57% places BAM in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

AFG vs. BAM: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

AFG

12.07%

Insurance Industry

Max
35.59%
Q3
21.31%
Median
14.99%
Q1
10.34%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

BAM

54.25%

Capital Markets Industry

Max
83.68%
Q3
47.64%
Median
32.36%
Q1
19.28%
Min
0.30%

An Operating Profit Margin of 54.25% places BAM in the upper quartile for the Capital Markets industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AFG vs. BAM: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolAFGBAM
Return on Equity (TTM)17.63%23.79%
Return on Assets (TTM)2.54%15.14%
Net Profit Margin (TTM)9.70%55.57%
Operating Profit Margin (TTM)12.07%54.25%
Gross Profit Margin (TTM)----

Financial Strength

Current Ratio (MRQ)

AFG

9.26

Insurance Industry

Max
2.64
Q3
1.19
Median
0.53
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

BAM

1.35

Capital Markets Industry

Max
3.43
Q3
1.76
Median
1.00
Q1
0.60
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

AFG vs. BAM: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AFG

0.38

Insurance Industry

Max
1.10
Q3
0.65
Median
0.35
Q1
0.23
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

BAM

0.31

Capital Markets Industry

Max
6.12
Q3
2.78
Median
0.96
Q1
0.31
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

AFG vs. BAM: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

AFG

14.21

Insurance Industry

Max
49.59
Q3
22.05
Median
9.63
Q1
3.42
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

BAM

20.09

Capital Markets Industry

Max
107.59
Q3
50.42
Median
10.94
Q1
4.37
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

AFG vs. BAM: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolAFGBAM
Current Ratio (MRQ)9.261.35
Quick Ratio (MRQ)9.261.35
Debt-to-Equity Ratio (MRQ)0.380.31
Interest Coverage Ratio (TTM)14.2120.09

Growth

Revenue Growth

AFG vs. BAM: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AFG vs. BAM: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AFG

6.48%

Insurance Industry

Max
9.43%
Q3
5.10%
Median
3.57%
Q1
2.02%
Min
0.00%

With a Dividend Yield of 6.48%, AFG offers a more attractive income stream than most of its peers in the Insurance industry, signaling a strong commitment to shareholder returns.

BAM

2.17%

Capital Markets Industry

Max
8.63%
Q3
4.88%
Median
2.72%
Q1
1.41%
Min
0.00%

BAM’s Dividend Yield of 2.17% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.

AFG vs. BAM: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

AFG

96.49%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
50.55%
Q1
22.12%
Min
0.00%

AFG’s Dividend Payout Ratio of 96.49% is in the upper quartile for the Insurance 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

122.97%

Capital Markets Industry

Max
188.84%
Q3
96.52%
Median
61.58%
Q1
31.74%
Min
0.00%

BAM’s Dividend Payout Ratio of 122.97% is in the upper quartile for the Capital Markets 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.

AFG vs. BAM: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolAFGBAM
Dividend Yield (TTM)6.48%2.17%
Dividend Payout Ratio (TTM)96.49%122.97%

Valuation

Price-to-Earnings Ratio (TTM)

AFG

14.89

Insurance Industry

Max
27.66
Q3
17.29
Median
12.59
Q1
9.86
Min
3.13

AFG’s P/E Ratio of 14.89 is within the middle range for the Insurance 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

40.42

Capital Markets Industry

Max
47.53
Q3
28.81
Median
16.62
Q1
12.06
Min
5.71

A P/E Ratio of 40.42 places BAM in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AFG vs. BAM: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

AFG

1.44

Insurance Industry

Max
3.39
Q3
1.95
Median
1.25
Q1
0.83
Min
0.22

AFG’s P/S Ratio of 1.44 aligns with the market consensus for the Insurance industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

BAM

22.46

Capital Markets Industry

Max
13.23
Q3
6.65
Median
4.40
Q1
2.22
Min
0.03

With a P/S Ratio of 22.46, BAM trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AFG vs. BAM: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

AFG

2.57

Insurance Industry

Max
4.36
Q3
2.47
Median
1.77
Q1
1.18
Min
0.17

AFG’s P/B Ratio of 2.57 is in the upper tier for the Insurance industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

BAM

10.23

Capital Markets Industry

Max
10.83
Q3
5.27
Median
2.66
Q1
1.34
Min
0.37

BAM’s P/B Ratio of 10.23 is in the upper tier for the Capital Markets industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AFG vs. BAM: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolAFGBAM
Price-to-Earnings Ratio (TTM)14.8940.42
Price-to-Sales Ratio (TTM)1.4422.46
Price-to-Book Ratio (MRQ)2.5710.23
Price-to-Free Cash Flow Ratio (TTM)9.2082.56