RLI Corp. (RLI) vs Selective Insurance Group, Inc. (SIGI)

RLI Corp. and Selective Insurance Group, Inc. are both Insurance Property & Casualty companies. RLI Corp. and Selective Insurance Group, Inc. are of similar size ($5.2B and $5.1B). Selective Insurance Group, Inc. trades at the lower P/E: 10.7× against 11.7×. RLI Corp. grew revenue faster over the last twelve months: 8.69% against 7.01%. RLI Corp. has the higher net margin (22.2% vs 8.93%) and the higher return on invested capital (17.4% vs 9.36%). Both pay a dividend; RLI Corp. yields more (2.08% vs 1.47%). Across the 23 metrics below, RLI Corp. leads on 13 and Selective Insurance Group, Inc. on 10.

Valuation

Metric RLI SIGI Insurance Property & Casualty median
P/E 11.70 10.68 10.29
P/S 2.59 0.94 1.17
P/B 2.92 1.48 1.83
Price to free cash flow 9.90 4.29 7.48
EV/EBITDA 10.10 8.65 7.49
EV/Sales 2.88 1.13 1.13
Earnings yield 8.55% 9.36% 9.50%
Free cash flow yield 10.10% 23.30% 13.29%

Profitability

Metric RLI SIGI Insurance Property & Casualty median
Gross margin 35.51% 41.16% 41.16%
Operating margin 28.50% 12.46% 15.09%
Net margin 22.22% 8.93% 11.51%
Free cash flow margin 26.19% 21.73% 17.59%
Return on equity 25.16% 14.73% 18.19%
Return on assets 7.07% 3.25% 3.74%
Return on invested capital 17.43% 9.36% 12.06%

Growth

Metric RLI SIGI Insurance Property & Casualty median
Revenue growth (TTM) 8.69% 7.01% 8.69%
EPS growth (last fiscal year) 16.84% 131.89% —
Revenue growth, 5-year CAGR 13.86% 12.80% 9.23%
Net income growth, 5-year CAGR 20.75% 13.16% 10.09%

Health

Metric RLI SIGI Insurance Property & Casualty median
Debt to equity 0.17 0.25 0.25
Current ratio 0.26 0.25 0.42
Net debt to EBITDA 0.09 1.32 0.08

Dividend

Metric RLI SIGI Insurance Property & Casualty median
Dividend yield 2.08% 1.47% 2.79%
Payout ratio 0.07 0.27 0.27

Size

Metric RLI SIGI Insurance Property & Casualty median
Market cap 5.15b 5.11b 2.44b

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