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 $7.6B against $5.1B — 1.5× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 10.3× against 10.7×. Selective Insurance Group, Inc. grew revenue faster over the last twelve months: 7.01% against 5.57%. The Hanover Insurance Group, Inc. has the higher net margin (11.2% vs 8.93%) and the higher return on invested capital (14.2% vs 9.36%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (2.64% vs 1.47%). Across the 23 metrics below, The Hanover Insurance Group, Inc. leads on 13 and Selective Insurance Group, Inc. on 10.

Valuation

Metric SIGI THG Insurance Property & Casualty median
P/E 10.68 10.28 10.29
P/S 0.94 1.13 1.17
P/B 1.48 2.07 1.83
Price to free cash flow 4.29 6.07 7.48
EV/EBITDA 8.65 8.07 7.49
EV/Sales 1.13 1.21 1.13
Earnings yield 9.36% 9.73% 9.50%
Free cash flow yield 23.30% 16.47% 13.29%

Profitability

Metric SIGI THG Insurance Property & Casualty median
Gross margin 41.16% 44.76% 41.16%
Operating margin 12.46% 14.98% 15.09%
Net margin 8.93% 11.17% 11.51%
Free cash flow margin 21.73% 18.52% 17.59%
Return on equity 14.73% 21.94% 18.19%
Return on assets 3.25% 4.64% 3.74%
Return on invested capital 9.36% 14.21% 12.06%

Growth

Metric SIGI THG Insurance Property & Casualty median
Revenue growth (TTM) 7.01% 5.57% 8.69%
EPS growth (last fiscal year) 131.89% 55.21% —
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 0.25 0.23 0.25
Current ratio 0.25 0.37 0.42
Net debt to EBITDA 1.32 0.11 0.08

Dividend

Metric SIGI THG Insurance Property & Casualty median
Dividend yield 1.47% 2.64% 2.79%
Payout ratio 0.27 0.37 0.27

Size

Metric SIGI THG Insurance Property & Casualty median
Market cap 5.11b 7.59b 2.44b

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