The Allstate Corporation versus CNA Financial Corporation Head to Head Compare

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This is a head to head compare of The Allstate Corporation (NYSE:ALL) and CNA Financial Corporation (NYSE:CNA) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
ALL +7.2% +18.2% +22.0%
CNA +7.4% +23.9% +39.4%

These companies have the same star rating so the head-to-head compare will rely on a deep dive into specific metric comparisons. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

The Allstate Corporation has substantially higher revenue in the last year than CNA Financial Corporation. Raw revenue comps do not affect the head to head rating.

Both ALL and CNA show positive earnings over the last year with the edge to ALL.

Net Income

CNA generates substantially larger revenue per employee ($1.4 million) than ALL ($844,000).

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

CNA Financial Corporation generates $1.18 in revenue for every $1 of expense, very similar to The Allstate Corporation's $1.17.

Revenue per Dollar of Expense

CNA generates $0.06 in levered free cash flow for every $1 of revenue, while ALL generates a cash flow loss of $-0.36 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

Both companies are growing revenue. CNA Financial Corporation is growing revenue faster than The Allstate Corporation but not by a notable amount.

Revenue Growth

For every $1 in revenue, the stock market prices in $0.81 in market cap for ALL and $1.22 in market cap for CNA.

Price to Sales

CNA Financial Corporation (NYSE:CNA)
The Allstate Corporation (NYSE:ALL) : 63 to 37