Selective Insurance Group (NASDAQ:SIGIP) vs. Selective Insurance Group (NASDAQ:SIGI) Critical Analysis

Selective Insurance Group (NASDAQ:SIGI) and Selective Insurance Group (NASDAQ:SIGIP) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Insider and Institutional Ownership

82.9% of Selective Insurance Group shares are owned by institutional investors. 0.8% of Selective Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Selective Insurance Group and Selective Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selective Insurance Group	1	4	3	0	2.25
Selective Insurance Group	0	0	0	0	0.00

Selective Insurance Group currently has a consensus price target of $100.33, suggesting a potential upside of 11.18%. Given Selective Insurance Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Selective Insurance Group is more favorable than Selective Insurance Group.

Dividends

Selective Insurance Group pays an annual dividend of $1.72 per share and has a dividend yield of 1.9%. Selective Insurance Group pays an annual dividend of $1.15 per share and has a dividend yield of 7.3%. Selective Insurance Group pays out 21.3% of its earnings in the form of a dividend. Selective Insurance Group has raised its dividend for 11 consecutive years.

Valuation & Earnings

This table compares Selective Insurance Group and Selective Insurance Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$5.34 billion	1.01	$466.41 million	$8.06	11.20
Selective Insurance Group	$5.47 billion	N/A	N/A	N/A	N/A

Selective Insurance Group has higher earnings, but lower revenue than Selective Insurance Group.

Profitability

This table compares Selective Insurance Group and Selective Insurance Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Selective Insurance Group	9.10%	14.51%	3.22%
Selective Insurance Group	N/A	N/A	N/A

Summary

Selective Insurance Group beats Selective Insurance Group on 9 of the 12 factors compared between the two stocks.

About Selective Insurance Group

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products. The company also invests in fixed income investments and commercial mortgage loans, as well as equity securities, short-term investments, and alternative investments, and other investments. It offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. The company was founded in 1926 and is headquartered in Branchville, New Jersey.

About Selective Insurance Group

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. The company operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. It offers casualty insurance products that covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party; property insurance products, which covers the accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and flood insurance products. The company also invests in fixed income investments and commercial mortgage loans, as well as equity securities, short-term investments, and alternative investments, and other investments. It offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. The company was founded in 1926 and is headquartered in Branchville, New Jersey.