Selective Insurance Group (NASDAQ: SIGI) and Unico American (NASDAQ:UNAM) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Selective Insurance Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Unico American does not pay a dividend. Selective Insurance Group pays out 23.9% of its earnings in the form of a dividend.
This table compares Selective Insurance Group and Unico American’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Selective Insurance Group||7.36%||11.00%||2.37%|
This is a breakdown of current recommendations for Selective Insurance Group and Unico American, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Selective Insurance Group||0||3||0||0||2.00|
Selective Insurance Group currently has a consensus target price of $53.22, indicating a potential downside of 10.64%. Given Selective Insurance Group’s higher probable upside, analysts clearly believe Selective Insurance Group is more favorable than Unico American.
Institutional and Insider Ownership
77.8% of Selective Insurance Group shares are owned by institutional investors. Comparatively, 27.3% of Unico American shares are owned by institutional investors. 3.0% of Selective Insurance Group shares are owned by company insiders. Comparatively, 54.1% of Unico American shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Selective Insurance Group has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Unico American has a beta of -0.52, suggesting that its share price is 152% less volatile than the S&P 500.
Valuation & Earnings
This table compares Selective Insurance Group and Unico American’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Selective Insurance Group||$2.28 billion||1.52||$158.49 million||$3.01||19.78|
|Unico American||$35.27 million||1.31||-$1.40 million||($1.01)||-8.61|
Selective Insurance Group has higher revenue and earnings than Unico American. Unico American 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.
Selective Insurance Group beats Unico American on 12 of the 14 factors compared between the two stocks.
Selective Insurance Group Company Profile
Selective Insurance Group, Inc. is a holding company. As of December 31, 2016, the Company had 10 insurance subsidiaries, nine of which were licensed by various state departments of insurance to write specific lines of property and casualty insurance business. The remaining subsidiary is authorized by various state insurance departments to write property and casualty insurance in the excess and surplus lines (E&S) market. Its segments include Standard Commercial Lines, which consists of insurance products and services provided in the standard marketplace; Standard Personal Lines, which consists of insurance products and services, including flood insurance coverage that it writes through the National Flood Insurance Program (NFIP); E&S Lines, which consists of insurance products and services provided to customers not obtaining coverage in the standard marketplace, and investment segment invests insurance premiums, as well as amounts generated through its capital management strategies.
Unico American Company Profile
Unico American Corporation is an insurance holding company. The Company underwrites property and casualty insurance through its insurance company subsidiary. It also provides property, casualty and health insurance through its agency subsidiaries and provides insurance premium financing and membership association services through its other subsidiaries. The Company’s operations are categorized between the Company’s segment, the insurance company operation and other insurance operations. The Company’s remaining operations constitute a range of specialty insurance services. The Company’s insurance company operation is conducted through Crusader Insurance Company (Crusader), its property and casualty insurance company. Crusader is a multiple line property and casualty insurance company. Crusader is licensed as an admitted insurance carrier in the states of Arizona, California, Nevada, Oregon and Washington.
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