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 ($5.5B and $5.2B). Selective Insurance Group, Inc. trades at the lower P/E: 11.1× against 12.8×. 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; Selective Insurance Group, Inc. yields more (1.93% vs 0.85%). Across the 21 metrics below, RLI Corp. leads on 12 and Selective Insurance Group, Inc. on 9.

Valuation

Metric RLI SIGI Insurance Property & Casualty median
P/E 12.83 11.06 10.75
P/S 2.84 0.97 1.21
P/B 3.20 1.54 1.99
Price to free cash flow 10.86 4.44 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.79% 9.04% 9.08%
Free cash flow yield 9.21% 22.50% 12.11%

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% 17.46%
Return on equity 25.16% 14.73% 17.34%
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% 8.02%
EPS growth (last fiscal year) 16.84% 131.89% 39.61%
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 0.85% 1.93% 1.50%
Payout ratio 0.11 0.21 0.14

Size

Metric RLI SIGI Insurance Property & Casualty median
Market cap 5.46b 5.20b 2.67b

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