Arch Capital Group (NASDAQ:ACGL) and Safety Insurance Group (NASDAQ:SAFT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
Safety Insurance Group pays an annual dividend of $3.20 per share and has a dividend yield of 3.7%. Arch Capital Group does not pay a dividend.
This is a breakdown of current ratings for Arch Capital Group and Safety Insurance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arch Capital Group||1||3||2||0||2.17|
|Safety Insurance Group||0||1||0||0||2.00|
Arch Capital Group presently has a consensus price target of $26.31, suggesting a potential downside of 7.21%. Safety Insurance Group has a consensus price target of $70.00, suggesting a potential downside of 19.35%. Given Arch Capital Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Arch Capital Group is more favorable than Safety Insurance Group.
This table compares Arch Capital Group and Safety Insurance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arch Capital Group||15.15%||10.41%||2.94%|
|Safety Insurance Group||8.99%||11.02%||4.21%|
Valuation and Earnings
This table compares Arch Capital Group and Safety Insurance Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arch Capital Group||$5.63 billion||2.04||$619.27 million||$1.07||26.50|
|Safety Insurance Group||$839.11 million||1.58||$62.38 million||N/A||N/A|
Arch Capital Group has higher revenue and earnings than Safety Insurance Group.
Insider & Institutional Ownership
80.6% of Arch Capital Group shares are held by institutional investors. Comparatively, 80.3% of Safety Insurance Group shares are held by institutional investors. 5.1% of Arch Capital Group shares are held by insiders. Comparatively, 4.9% of Safety Insurance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Arch Capital Group has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Arch Capital Group beats Safety Insurance Group on 11 of the 14 factors compared between the two stocks.
Arch Capital Group Company Profile
Arch Capital Group Ltd., together with its subsidiaries, provides property, casualty, and mortgage insurance and reinsurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; collateral protection, debt cancellation, and service contract reimbursement products; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employers' liability insurance coverages; and contract and commercial surety coverages. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides reinsurance for third party liability and workers' compensation exposures; marine and aviation reinsurance; surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses and commercial property risks; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers, and directly to ceding companies. The company's Mortgage segment offers private mortgage insurance covering one-to-four family residential mortgages; mortgage insurance to cover previously originated residential loans; quota share reinsurance; and risk-sharing products. This segment sells its products through direct basis and through brokers to mortgage originators. The company was founded in 1995 and is based in Pembroke, Bermuda.
Safety Insurance Group Company Profile
Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella policies, as well as underwrites dwelling fire insurance for non-owner occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies; and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is based in Boston, Massachusetts.
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