Everest Re Group (NYSE:RE) and Selective Insurance Group (NASDAQ:SIGI) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Everest Re Group pays an annual dividend of $5.60 per share and has a dividend yield of 2.2%. Selective Insurance Group pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Everest Re Group pays out 120.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Selective Insurance Group pays out 21.9% of its earnings in the form of a dividend. Everest Re Group has raised its dividend for 6 consecutive years and Selective Insurance Group has raised its dividend for 5 consecutive years. Everest Re Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
91.3% of Everest Re Group shares are owned by institutional investors. Comparatively, 78.7% of Selective Insurance Group shares are owned by institutional investors. 1.4% of Everest Re Group 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Everest Re Group and Selective Insurance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Everest Re Group||0||7||1||0||2.13|
|Selective Insurance Group||1||3||0||0||1.75|
Everest Re Group currently has a consensus target price of $249.50, indicating a potential downside of 3.19%. Selective Insurance Group has a consensus target price of $61.50, indicating a potential downside of 20.15%. Given Everest Re Groupâ€™s stronger consensus rating and higher possible upside, equities analysts clearly believe Everest Re Group is more favorable than Selective Insurance Group.
Risk and Volatility
Everest Re Group has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Valuation and Earnings
This table compares Everest Re Group and Selective Insurance Groupâ€™s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Everest Re Group||$7.38 billion||1.42||$103.55 million||$4.65||55.42|
|Selective Insurance Group||$2.59 billion||1.76||$178.93 million||$3.66||21.04|
Selective Insurance Group has lower revenue, but higher earnings than Everest Re Group. Selective Insurance Group is trading at a lower price-to-earnings ratio than Everest Re Group, indicating that it is currently the more affordable of the two stocks.
This table compares Everest Re Group and Selective Insurance Groupâ€™s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Everest Re Group||3.19%||3.08%||1.03%|
|Selective Insurance Group||8.32%||13.72%||3.07%|
Everest Re Group beats Selective Insurance Group on 9 of the 17 factors compared between the two stocks.
Everest Re Group Company Profile
Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda; and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, brokers, and surplus lines brokers in the United States, Canada, and Europe. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors’ and officers’ liability, medical malpractice, and worker’s compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.
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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