Selective Insurance Group (NASDAQ:SIGI – Get Free Report) and AMERISAFE (NASDAQ:AMSF – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Analyst Ratings
This is a summary of current ratings for Selective Insurance Group and AMERISAFE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Selective Insurance Group | 1 | 3 | 1 | 0 | 2.00 |
| AMERISAFE | 0 | 1 | 0 | 0 | 2.00 |
Selective Insurance Group presently has a consensus price target of $104.67, suggesting a potential upside of 5.31%. AMERISAFE has a consensus price target of $58.00, suggesting a potential upside of 18.22%. Given AMERISAFE’s higher possible upside, analysts clearly believe AMERISAFE is more favorable than Selective Insurance Group.
Profitability
This table compares Selective Insurance Group and AMERISAFE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Selective Insurance Group | 8.57% | 14.43% | 3.22% |
| AMERISAFE | 20.78% | 17.42% | 4.48% |
Dividends
Selective Insurance Group pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. AMERISAFE pays an annual dividend of $1.36 per share and has a dividend yield of 2.8%. Selective Insurance Group pays out 24.0% of its earnings in the form of a dividend. AMERISAFE pays out 41.1% 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 10 consecutive years and AMERISAFE has raised its dividend for 10 consecutive years.
Institutional & Insider Ownership
83.7% of Selective Insurance Group shares are owned by institutional investors. Comparatively, 96.9% of AMERISAFE shares are owned by institutional investors. 1.5% of Selective Insurance Group shares are owned by company insiders. Comparatively, 1.6% of AMERISAFE shares are owned by company 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.
Earnings & Valuation
This table compares Selective Insurance Group and AMERISAFE’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Selective Insurance Group | $4.23 billion | 1.42 | $224.89 million | $5.83 | 17.05 |
| AMERISAFE | $294.74 million | 3.19 | $55.60 million | $3.31 | 14.82 |
Selective Insurance Group has higher revenue and earnings than AMERISAFE. AMERISAFE 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 & Risk
Selective Insurance Group has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, AMERISAFE has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.
Summary
AMERISAFE beats Selective Insurance Group on 8 of the 15 factors compared between the two stocks.
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 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; 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; 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 AMERISAFE
(Get Free Report)
AMERISAFE, Inc., an insurance holding company, underwrites workers’ compensation insurance in the United States. The company’s workers’ compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It serves small to mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. AMERISAFE, Inc. was incorporated in 1985 and is based in DeRidder, Louisiana.
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