Loews (NYSE:L) & Selective Insurance Group (NASDAQ:SIGI) Head to Head Survey

Loews (NYSE:LGet Rating) and Selective Insurance Group (NASDAQ:SIGIGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Valuation & Earnings

This table compares Loews and Selective Insurance Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loews $14.66 billion 1.06 $1.58 billion $6.44 9.81
Selective Insurance Group $3.38 billion 1.36 $403.84 million $5.64 13.53

Loews has higher revenue and earnings than Selective Insurance Group. Loews is trading at a lower price-to-earnings ratio than Selective Insurance Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Loews pays an annual dividend of $0.25 per share and has a dividend yield of 0.4%. Selective Insurance Group pays an annual dividend of $1.12 per share and has a dividend yield of 1.5%. Loews pays out 3.9% of its earnings in the form of a dividend. Selective Insurance Group pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Selective Insurance Group has raised its dividend for 8 consecutive years. Selective Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Loews and Selective Insurance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loews 11.46% 6.47% 1.51%
Selective Insurance Group 10.19% 13.77% 3.59%

Institutional & Insider Ownership

61.1% of Loews shares are held by institutional investors. Comparatively, 81.4% of Selective Insurance Group shares are held by institutional investors. 17.5% of Loews shares are held by insiders. Comparatively, 2.0% of Selective Insurance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Loews and Selective Insurance Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loews 0 0 1 0 3.00
Selective Insurance Group 0 3 1 0 2.25

Loews currently has a consensus target price of $112.00, indicating a potential upside of 77.36%. Selective Insurance Group has a consensus target price of $84.75, indicating a potential upside of 11.09%. Given Loews’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Loews is more favorable than Selective Insurance Group.

Risk & Volatility

Loews has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Summary

Loews beats Selective Insurance Group on 9 of the 16 factors compared between the two stocks.

Loews Company Profile (Get Rating)

Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids(NGLs), and hydrocarbons through natural gas pipelines covering approximately 13,615 miles of interconnected pipelines; 450 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 213 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services. Further, the company operates a chain of 26 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice segments, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.

Selective Insurance Group Company Profile (Get Rating)

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates through four segments: Standard Commercial Lines, Standard Personal Lines, E&S Lines, and Investments. The company offers property insurance products, which covers the financial consequences of accidental loss of an insured's real property, personal property, and/or earnings due to the property's loss; and casualty insurance products that covers the financial consequences of employee injuries in the course of employment, and bodily injury and/or property damage to a third party, as well as flood insurance products. It also invests in fixed income investments and commercial mortgage loans, as well as equity securities and alternative investment portfolio. The company offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail agents and wholesale general agents. Selective Insurance Group, Inc. was founded in 1926 and is headquartered in Branchville, New Jersey.

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