Selective Insurance Group, Inc. (SIGI) vs The Hanover Insurance Group, Inc. (THG)

Selective Insurance Group, Inc. and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. The Hanover Insurance Group, Inc. is the larger, with a market value of $8.5B against $5.9B — 1.4× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.7× against 12.1×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.04% against 3.99%. The Hanover Insurance Group, Inc. has the higher net margin (11.0% vs 9.23%) and the higher return on invested capital (15.9% vs 10.1%). Both pay a dividend; Selective Insurance Group, Inc. yields more (2.19% vs 1.53%). Across the 21 metrics below, The Hanover Insurance Group, Inc. leads on 12 and Selective Insurance Group, Inc. on 9.

Valuation

Metric SIGI THG Insurance Property & Casualty median
P/E 12.06 11.67 11.87
P/S 1.09 1.26 1.26
P/B 1.83 2.50 1.99
Price to free cash flow 5.19 7.06 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.29% 8.57% 8.04%
Free cash flow yield 19.28% 14.16% 11.85%

Profitability

Metric SIGI THG Insurance Property & Casualty median
Gross margin 41.83% 44.41% 41.66%
Operating margin 12.84% 14.71% 14.71%
Net margin 9.23% 10.97% 10.84%
Free cash flow margin 20.94% 17.85% 17.46%
Return on equity 15.35% 21.83% 16.87%
Return on assets 3.27% 4.43% 3.57%
Return on invested capital 10.07% 15.87% 12.03%

Growth

Metric SIGI THG Insurance Property & Casualty median
Revenue growth (TTM) 3.99% 5.04% 5.92%
EPS growth (last fiscal year) 131.89% 55.21% 39.61%
Revenue growth, 5-year CAGR 12.80% 6.45% 9.23%
Net income growth, 5-year CAGR 13.16% 13.06% 10.09%

Health

Metric SIGI THG Insurance Property & Casualty median
Debt to equity 0.26 0.25 0.25
Current ratio 0.25 0.39 0.42
Net debt to EBITDA 1.32 0.11 0.08

Dividend

Metric SIGI THG Insurance Property & Casualty median
Dividend yield 2.19% 1.53% 1.44%
Payout ratio 0.26 0.18 0.14

Size

Metric SIGI THG Insurance Property & Casualty median
Market cap 5.93b 8.50b 2.61b

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