Selective Insurance Group (SIGI) vs. Progressive (PGR) Head to Head Analysis

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

Valuation and Earnings

This table compares Progressive and Selective Insurance Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progressive $31.98 billion 1.37 $2.62 billion $4.42 16.97
Selective Insurance Group $2.59 billion 1.58 $178.93 million $3.66 18.86

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

Volatility and Risk

Progressive has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

80.6% of Progressive shares are owned by institutional investors. Comparatively, 79.9% of Selective Insurance Group shares are owned by institutional investors. 0.4% of Progressive shares are owned by company insiders. Comparatively, 2.0% of Selective Insurance Group 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Progressive 8.77% 26.80% 6.44%
Selective Insurance Group 6.92% 12.69% 2.79%

Analyst Ratings

This is a summary of current recommendations for Progressive and Selective Insurance Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progressive 0 5 7 1 2.69
Selective Insurance Group 1 3 0 0 1.75

Progressive currently has a consensus target price of $74.15, suggesting a potential downside of 1.13%. Selective Insurance Group has a consensus target price of $61.50, suggesting a potential downside of 10.91%. Given Progressive’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Progressive is more favorable than Selective Insurance Group.

Dividends

Progressive pays an annual dividend of $2.61 per share and has a dividend yield of 3.5%. Selective Insurance Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Progressive pays out 59.0% of its earnings in the form of a dividend. Selective Insurance Group pays out 21.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Selective Insurance Group has raised its dividend for 5 consecutive years.

Summary

Progressive beats Selective Insurance Group on 12 of the 18 factors compared between the two stocks.

Progressive Company Profile

Progressive Corp. is an insurance holding company, which engages in the provision of personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services. It operates through the following segments: Personal Lines, Commercial Lines, Property, and Other Indemnity. The Personal Lines segment includes agency and direct businesses. The Commercial Lines segment writes primary liability and physical damage insurance for automobiles and trucks owned and operated predominately by small business in the auto, for-hire transportation, contractor, for-hire specialty, tow, and for-hire livery markets. The Property segment covers residential property insurance for homeowners, other property owners, and renters. The Other Indemnity segment manages run-off businesses. The company was founded in 1965 and is headquartered in Mayfield Village, OH.

Selective Insurance Group Company Profile

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, Excess and Surplus Lines, and Investments. The company's products and services include property insurance, which covers the financial consequences of accidental loss of an insured's real and/or personal property; and casualty insurance that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party as a result of an insured's negligent acts, omissions, or legal liabilities. It also offers flood insurance products. The company provides its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. In addition, it invests in fixed income investments and preferred stocks, equity securities, and alternative investment portfolio. Selective Insurance Group, Inc. was founded in 1926 and is headquartered in Branchville, New Jersey.

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