Conflicts between the American Financial Group (AFG) and the Atlas Financial (AFH)

American Financial Group (AFG)

American Financial Group and Atlas Financial are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

64.1% of American Financial Group shares are owned by institutional investors. Comparatively, 73.9% of Atlas Financial shares are owned by institutional investors. 11.9% of American Financial Group shares are owned by company insiders. Comparatively, 15.1% of Atlas Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

American Financial Group presently has a consensus target price of $107.00, indicating a potential upside of 4.40%. Atlas Financial has a consensus target price of $10.00, indicating a potential upside of 908.88%. Given Atlas Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Atlas Financial is more favorable than American Financial Group.

Volatility & Risk:

American Financial Group has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Atlas Financial has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Dividends:

American Financial Group pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Atlas Financial does not pay a dividend. American Financial Group pays out 19.0% of its earnings in the form of a dividend. American Financial Group has increased its dividend for 13 consecutive years.

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

Summary:

American Financial Group beats Atlas Financial on 11 of the 17 factors compared between the two stocks.