AFG vs. MORN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFG and MORN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AFG’s market capitalization stands at 10.64 billion USD, while MORN’s is 13.15 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.71 for AFG and 1.03 for MORN, both stocks show similar sensitivity to overall market movements.
| Symbol | AFG | MORN |
|---|---|---|
| Company Name | American Financial Group, Inc. | Morningstar, Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Property & Casualty | Financial - Data & Stock Exchanges |
| CEO | Stephen Craig Lindner | Kunal Kapoor CFA |
| Price | 127.43 USD | 311.29 USD |
| Market Cap | 10.64 billion USD | 13.15 billion USD |
| Beta | 0.71 | 1.03 |
| Exchange | NYSE | NASDAQ |
| IPO Date | March 17, 1980 | May 3, 2005 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AFG and MORN 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.
MORN
24.68%
Financial - Data & Stock Exchanges Industry
- Max
- 26.26%
- Q3
- 23.14%
- Median
- 14.33%
- Q1
- 11.12%
- Min
- -0.64%
In the upper quartile for the Financial - Data & Stock Exchanges industry, MORN’s Return on Equity of 24.68% 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.
MORN
14.84%
Financial - Data & Stock Exchanges Industry
- Max
- 18.31%
- Q3
- 14.86%
- Median
- 11.07%
- Q1
- 6.75%
- Min
- 4.04%
MORN’s Return on Invested Capital of 14.84% is in line with the norm for the Financial - Data & Stock Exchanges 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.
MORN
16.61%
Financial - Data & Stock Exchanges Industry
- Max
- 39.08%
- Q3
- 31.63%
- Median
- 23.20%
- Q1
- 18.09%
- Min
- -0.88%
Falling into the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s Net Profit Margin of 16.61% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
MORN
22.05%
Financial - Data & Stock Exchanges Industry
- Max
- 53.68%
- Q3
- 40.45%
- Median
- 31.81%
- Q1
- 24.66%
- Min
- 9.71%
MORN’s Operating Profit Margin of 22.05% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AFG | MORN |
|---|---|---|
| Return on Equity (TTM) | 17.81% | 24.68% |
| Return on Assets (TTM) | 2.64% | 10.71% |
| Return on Invested Capital (TTM) | 27.67% | 14.84% |
| Net Profit Margin (TTM) | 13.06% | 16.61% |
| Operating Profit Margin (TTM) | 14.02% | 22.05% |
| Gross Profit Margin (TTM) | 69.59% | 58.57% |
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.
MORN
1.11
Financial - Data & Stock Exchanges Industry
- Max
- 1.60
- Q3
- 1.57
- Median
- 1.06
- Q1
- 0.96
- Min
- 0.62
MORN’s Current Ratio of 1.11 aligns with the median group of the Financial - Data & Stock Exchanges 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.
MORN
0.62
Financial - Data & Stock Exchanges Industry
- Max
- 1.09
- Q3
- 0.80
- Median
- 0.62
- Q1
- 0.36
- Min
- 0.04
MORN’s Debt-to-Equity Ratio of 0.62 is typical for the Financial - Data & Stock Exchanges industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
MORN
14.20
Financial - Data & Stock Exchanges Industry
- Max
- 27.44
- Q3
- 22.05
- Median
- 10.08
- Q1
- 6.79
- Min
- 1.01
MORN’s Interest Coverage Ratio of 14.20 is positioned comfortably within the norm for the Financial - Data & Stock Exchanges industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AFG | MORN |
|---|---|---|
| Current Ratio (TTM) | -- | 1.11 |
| Quick Ratio (TTM) | -- | 1.11 |
| Debt-to-Equity Ratio (TTM) | 0.34 | 0.62 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.28 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.31 | 0.66 |
| Interest Coverage Ratio (TTM) | 11.29 | 14.20 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AFG and MORN. 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.
MORN
0.55%
Financial - Data & Stock Exchanges Industry
- Max
- 3.86%
- Q3
- 1.44%
- Median
- 1.06%
- Q1
- 0.73%
- Min
- 0.00%
MORN’s Dividend Yield of 0.55% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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.
MORN
18.61%
Financial - Data & Stock Exchanges Industry
- Max
- 106.40%
- Q3
- 44.44%
- Median
- 31.97%
- Q1
- 29.26%
- Min
- 0.00%
MORN’s Dividend Payout Ratio of 18.61% is in the lower quartile for the Financial - Data & Stock Exchanges industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | AFG | MORN |
|---|---|---|
| Dividend Yield (TTM) | 7.15% | 0.55% |
| Dividend Payout Ratio (TTM) | 94.24% | 18.61% |
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.
MORN
34.68
Financial - Data & Stock Exchanges Industry
- Max
- 41.71
- Q3
- 40.17
- Median
- 37.47
- Q1
- 30.61
- Min
- 16.74
MORN’s P/E Ratio of 34.68 is within the middle range for the Financial - Data & Stock Exchanges industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
MORN
2.34
Financial - Data & Stock Exchanges Industry
- Max
- 4.54
- Q3
- 4.09
- Median
- 4.06
- Q1
- 3.33
- Min
- 2.36
MORN’s Forward PEG Ratio of 2.34 is below the typical range for the Financial - Data & Stock Exchanges industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
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.
MORN
5.69
Financial - Data & Stock Exchanges Industry
- Max
- 15.75
- Q3
- 12.42
- Median
- 9.37
- Q1
- 6.34
- Min
- 1.69
In the lower quartile for the Financial - Data & Stock Exchanges industry, MORN’s P/S Ratio of 5.69 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
MORN
8.28
Financial - Data & Stock Exchanges Industry
- Max
- 8.57
- Q3
- 8.05
- Median
- 4.77
- Q1
- 3.69
- Min
- 1.19
MORN’s P/B Ratio of 8.28 is in the upper tier for the Financial - Data & Stock Exchanges 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.
Valuation at a Glance
| Symbol | AFG | MORN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 13.36 | 34.68 |
| Forward PEG Ratio (TTM) | 1.41 | 2.34 |
| Price-to-Sales Ratio (P/S, TTM) | 1.74 | 5.69 |
| Price-to-Book Ratio (P/B, TTM) | 2.43 | 8.28 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 7.47 | 29.34 |
| EV-to-EBITDA (TTM) | 16.68 | 18.45 |
| EV-to-Sales (TTM) | 1.77 | 5.90 |