Financial Comparison: Everest Group (NYSE:EG) vs. Selective Insurance Group (NASDAQ:SIGI)
Everest Group (NYSE:EG – Get Free Report) and Selective Insurance Group (NASDAQ:SIGI – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability. Profitability This table compares Everest Group and Selective Insurance Group’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Everest Group 18.69% 24.86% 6.36% Selective Insurance Group 8.02% 13.73% 3.09% Valuation & Earnings This table compares Everest Group and Selective Insurance Group’s revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Everest Group $14.59 billion 1.17 $2.52 billion $67.29 5.84 Selective Insurance Group $4.40 billion 1.35 $365.24 million $5.66 17.28 Everest Group has higher revenue and earnings than Selective Insurance Group. Everest Group 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. Dividends Everest Group pays an annual dividend of $7.00 per share and has a dividend yield of 1.8%. Selective Insurance Group pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. Everest Group pays out 10.4% of its earnings in the form of a dividend. Selective Insurance Group pays out 24.7% 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. Everest Group has increased its dividend for 2 consecutive years and Selective Insurance Group has increased its dividend for 10 consecutive years. Everest Group is clearly the better dividend stock, given its higher yield and lower payout ratio. Analyst Recommendations This is a breakdown of recent ratings and target prices for Everest Group and Selective Insurance Group, as reported by MarketBeat.com. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Everest Group 0 3 3 1 2.71 Selective Insurance Group 1 4 1 0 2.00 Everest Group currently has a consensus price target of $432.11, suggesting a potential upside of 9.97%. Selective Insurance Group has a consensus price target of $105.17, suggesting a potential upside of 7.55%. Given Everest Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Everest Group is more favorable than Selective Insurance Group. Volatility and Risk Everest Group has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Insider and Institutional Ownership 92.6% of Everest Group shares are owned by institutional investors. Comparatively, 82.9% of Selective Insurance Group shares are owned by institutional investors. 1.2% of Everest Group shares are owned by insiders. Comparatively, 1.5% of Selective Insurance Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term. Summary Everest Group beats Selective Insurance Group on 14 of the 18 factors compared between the two stocks. About Everest Group (Get Free Report) Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda. About Selective Insurance Group (Get Free Report) 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.
May 20, 2024 | www.defenseworld.net