Hagerty, Inc. (HGTY) vs Selective Insurance Group, Inc. (SIGI)

Hagerty, Inc. and Selective Insurance Group, Inc. are both Insurance Property & Casualty companies. Hagerty, Inc. and Selective Insurance Group, Inc. are of similar size ($6.3B and $6.0B). Selective Insurance Group, Inc. trades at the lower P/E: 12.2× against 57.0×. Selective Insurance Group, Inc. grew revenue faster over the last twelve months: 3.99% against −3.77%. Selective Insurance Group, Inc. has the higher net margin (9.23% vs 0.52%) and the higher return on invested capital (10.1% vs 0.00%). Across the 20 metrics below, Selective Insurance Group, Inc. leads on 13 and Hagerty, Inc. on 7.

Valuation

Metric HGTY SIGI Insurance Property & Casualty median
P/E 57.02 12.19 12.17
P/S 1.41 1.11 1.26
P/B 2.93 1.85 1.85
Price to free cash flow 6.96 5.24 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.75% 8.20% 8.20%
Free cash flow yield 14.36% 19.07% 11.86%

Profitability

Metric HGTY SIGI Insurance Property & Casualty median
Gross margin 100.00% 41.83% 37.39%
Operating margin 18.23% 12.84% 14.67%
Net margin 0.52% 9.23% 10.16%
Free cash flow margin 20.29% 20.94% 18.60%
Return on equity 1.10% 15.35% 16.59%
Return on assets 0.32% 3.27% 3.38%
Return on invested capital 0.00% 10.07% 9.43%

Growth

Metric HGTY SIGI Insurance Property & Casualty median
Revenue growth (TTM) (3.77%) 3.99% 5.70%
EPS growth (last fiscal year) 270.00% 131.89% 39.61%
Revenue growth, 5-year CAGR 23.86% 12.80% 9.23%
Net income growth, 5-year CAGR 32.47% 13.16% 10.09%

Health

Metric HGTY SIGI Insurance Property & Casualty median
Debt to equity 0.41 0.26 0.25
Current ratio 1.59 0.25 0.49
Net debt to EBITDA (3.42) 1.32 0.08

Dividend

Metric HGTY SIGI Insurance Property & Casualty median
Dividend yield — 1.70% 1.56%
Payout ratio — 0.21 0.15

Size

Metric HGTY SIGI Insurance Property & Casualty median
Market cap 6.31b 6.00b 2.64b

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