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 ($6.4B and $6.0B). Selective Insurance Group, Inc. trades at the lower P/E: 12.2× against 16.2×. RLI Corp. grew revenue faster over the last twelve months: 4.65% against 3.99%. RLI Corp. has the higher net margin (20.3% vs 9.23%) and the higher return on invested capital (16.5% vs 10.1%). Both pay a dividend; Selective Insurance Group, Inc. yields more (1.70% vs 0.75%). 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 16.22 12.19 12.17
P/S 3.29 1.11 1.26
P/B 3.77 1.85 1.85
Price to free cash flow 12.02 5.24 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.16% 8.20% 8.20%
Free cash flow yield 8.32% 19.07% 11.86%

Profitability

Metric RLI SIGI Insurance Property & Casualty median
Gross margin 33.49% 41.83% 37.39%
Operating margin 26.42% 12.84% 14.67%
Net margin 20.34% 9.23% 10.16%
Free cash flow margin 27.37% 20.94% 18.60%
Return on equity 22.13% 15.35% 16.59%
Return on assets 6.23% 3.27% 3.38%
Return on invested capital 16.47% 10.07% 9.43%

Growth

Metric RLI SIGI Insurance Property & Casualty median
Revenue growth (TTM) 4.65% 3.99% 5.70%
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 0.18 0.26 0.25
Current ratio 0.25 0.25 0.49
Net debt to EBITDA 0.09 1.32 0.08

Dividend

Metric RLI SIGI Insurance Property & Casualty median
Dividend yield 0.75% 1.70% 1.56%
Payout ratio 0.12 0.21 0.15

Size

Metric RLI SIGI Insurance Property & Casualty median
Market cap 6.40b 6.00b 2.64b

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