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. Stewart Information Services Corporation is the larger, with a market value of $1.8B against $1.5B — 1.2× the size. Stewart Information Services Corporation trades at the lower P/E: 13.0× against 22.3×. Stewart Information Services Corporation grew revenue faster over the last twelve months: 22.5% against 7.21%. Safety Insurance Group, Inc. has the higher net margin (5.33% vs 4.12%) and the lower return on invested capital (6.55% vs 9.12%). Both pay a dividend; Safety Insurance Group, Inc. yields more (4.37% vs 3.10%). Across the 23 metrics below, Stewart Information Services Corporation leads on 15 and Safety Insurance Group, Inc. on 8.

Valuation

Metric SAFT STC Insurance Property & Casualty median
P/E 22.26 12.98 10.29
P/S 1.17 0.55 1.17
P/B 1.71 1.08 1.83
Price to free cash flow 8.55 12.24 7.48
EV/EBITDA 16.19 6.01 7.49
EV/Sales 1.18 0.67 1.13
Earnings yield 4.49% 7.70% 9.50%
Free cash flow yield 11.69% 8.17% 13.29%

Profitability

Metric SAFT STC Insurance Property & Casualty median
Gross margin 7.63% 64.35% 41.16%
Operating margin 6.99% 9.19% 15.09%
Net margin 5.33% 4.12% 11.51%
Free cash flow margin 13.66% 4.50% 17.59%
Return on equity 7.84% 8.64% 18.19%
Return on assets 2.82% 4.44% 3.74%
Return on invested capital 6.55% 9.12% 12.06%

Growth

Metric SAFT STC Insurance Property & Casualty median
Revenue growth (TTM) 7.21% 22.49% 8.69%
EPS growth (last fiscal year) 40.17% 55.17% —
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 1.81 0.42
Net debt to EBITDA (0.18) 0.99 0.08

Dividend

Metric SAFT STC Insurance Property & Casualty median
Dividend yield 4.37% 3.10% 2.79%
Payout ratio 1.50 0.97 0.27

Size

Metric SAFT STC Insurance Property & Casualty median
Market cap 1.52b 1.82b 2.44b

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