Safety Insurance Group, Inc. (SAFT) vs Stewart Information Services Corporation (STC)

Safety Insurance Group, Inc. and Stewart Information Services Corporation are both Insurance Property & Casualty companies. Safety Insurance Group, Inc. is the larger, with a market value of $1.5B against $1.4B — 1.1× the size. Stewart Information Services Corporation trades at the lower P/E: 11.2× against 22.4×. Stewart Information Services Corporation grew revenue faster over the last twelve months: 20.6% against 7.21%. Safety Insurance Group, Inc. has the higher net margin (5.33% vs 3.58%) and the lower return on invested capital (6.55% vs 8.33%). Both pay a dividend; Stewart Information Services Corporation yields more (4.75% vs 3.53%). Across the 21 metrics below, Stewart Information Services Corporation leads on 13 and Safety Insurance Group, Inc. on 8.

Valuation

Metric SAFT STC Insurance Property & Casualty median
P/E 22.42 11.22 11.87
P/S 1.18 0.40 1.26
P/B 1.73 0.81 1.99
Price to free cash flow 8.62 9.26 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 4.46% 8.92% 8.04%
Free cash flow yield 11.60% 10.80% 11.85%

Profitability

Metric SAFT STC Insurance Property & Casualty median
Gross margin 7.63% 64.86% 41.66%
Operating margin 6.99% 8.64% 14.71%
Net margin 5.33% 3.58% 10.84%
Free cash flow margin 13.66% 0.00% 17.46%
Return on equity 7.84% 7.63% 16.87%
Return on assets 2.82% 3.93% 3.57%
Return on invested capital 6.55% 8.33% 12.03%

Growth

Metric SAFT STC Insurance Property & Casualty median
Revenue growth (TTM) 7.21% 20.55% 5.92%
EPS growth (last fiscal year) 40.17% 55.17% 39.61%
Revenue growth, 5-year CAGR 8.35% 5.01% 9.23%
Net income growth, 5-year CAGR (6.41%) (5.70%) 10.09%

Health

Metric SAFT STC Insurance Property & Casualty median
Debt to equity 0.06 0.39 0.25
Current ratio 0.40 1.63 0.42
Net debt to EBITDA (0.18) 0.99 0.08

Dividend

Metric SAFT STC Insurance Property & Casualty median
Dividend yield 3.53% 4.75% 1.44%
Payout ratio 0.79 0.53 0.14

Size

Metric SAFT STC Insurance Property & Casualty median
Market cap 1.53b 1.37b 2.61b

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