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 ($5.1B and $4.7B). Selective Insurance Group, Inc. trades at the lower P/E: 10.7× against 84.8×. Selective Insurance Group, Inc. grew revenue faster over the last twelve months: 7.01% against 3.75%. Selective Insurance Group, Inc. has the higher net margin (8.93% vs 1.25%) and the higher return on invested capital (9.36% vs 0.00%). Across the 22 metrics below, Selective Insurance Group, Inc. leads on 13 and Hagerty, Inc. on 9.

Valuation

Metric HGTY SIGI Insurance Property & Casualty median
P/E 84.81 10.68 10.29
P/S 0.98 0.94 1.17
P/B 2.13 1.48 1.83
Price to free cash flow 4.96 4.29 7.48
EV/EBITDA 2.03 8.65 7.49
EV/Sales 0.32 1.13 1.13
Earnings yield 1.18% 9.36% 9.50%
Free cash flow yield 20.16% 23.30% 13.29%

Profitability

Metric HGTY SIGI Insurance Property & Casualty median
Gross margin 100.00% 41.16% 41.16%
Operating margin 13.39% 12.46% 15.09%
Net margin 1.25% 8.93% 11.51%
Free cash flow margin 19.68% 21.73% 17.59%
Return on equity 2.88% 14.73% 18.19%
Return on assets 0.84% 3.25% 3.74%
Return on invested capital 0.00% 9.36% 12.06%

Growth

Metric HGTY SIGI Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 7.01% 8.69%
EPS growth (last fiscal year) 270.00% 131.89% —
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 0.40 0.25 0.25
Current ratio 1.53 0.25 0.42
Net debt to EBITDA (3.42) 1.32 0.08

Dividend

Metric HGTY SIGI Insurance Property & Casualty median
Dividend yield — 1.47% 2.79%
Payout ratio 0.00 0.27 0.27

Size

Metric HGTY SIGI Insurance Property & Casualty median
Market cap 4.67b 5.11b 2.44b

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