Selective Insurance Group (NASDAQ:SIGI) versus Waterdrop (NYSE:WDH) Head-To-Head Comparison

Selective Insurance Group (NASDAQ:SIGI) and Waterdrop (NYSE:WDH) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Risk & Volatility

Selective Insurance Group has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Waterdrop has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500.

Insider & Institutional Ownership

82.9% of Selective Insurance Group shares are held by institutional investors. Comparatively, 2.0% of Waterdrop shares are held by institutional investors. 0.8% of Selective Insurance Group shares are held by insiders. Comparatively, 24.6% of Waterdrop shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Selective Insurance Group and Waterdrop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selective Insurance Group	1	5	2	0	2.12
Waterdrop	0	1	0	0	2.00

Selective Insurance Group presently has a consensus target price of $99.33, indicating a potential upside of 16.06%. Given Selective Insurance Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Selective Insurance Group is more favorable than Waterdrop.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Selective Insurance Group	9.10%	14.51%	3.22%
Waterdrop	10.69%	10.47%	7.40%

Dividends

Selective Insurance Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.0%. Waterdrop pays an annual dividend of $0.05 per share and has a dividend yield of 4.8%. Selective Insurance Group pays out 21.3% of its earnings in the form of a dividend. Waterdrop pays out 23.8% 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 11 consecutive years.

Valuation & Earnings

This table compares Selective Insurance Group and Waterdrop”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$5.34 billion	0.96	$466.41 million	$8.06	10.62
Waterdrop	$568.81 million	0.66	$81.36 million	$0.21	4.93

Selective Insurance Group has higher revenue and earnings than Waterdrop. Waterdrop 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.

Summary

Selective Insurance Group beats Waterdrop on 13 of the 17 factors compared between the two stocks.

About Selective Insurance Group

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

About Waterdrop

Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. Waterdrop Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.