Reviewing Selective Insurance Group (NASDAQ:SIGI) and International General Insurance (NASDAQ:IGIC)

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

Dividends

International General Insurance pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. Selective Insurance Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.0%. International General Insurance pays out 12.0% of its earnings in the form of a dividend. Selective Insurance Group pays out 21.3% 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. International General Insurance has raised its dividend for 2 consecutive years and Selective Insurance Group has raised its dividend for 11 consecutive years. Selective Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

54.2% of International General Insurance shares are owned by institutional investors. Comparatively, 82.9% of Selective Insurance Group shares are owned by institutional investors. 20.1% of International General Insurance shares are owned by company insiders. Comparatively, 0.8% of Selective Insurance Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares International General Insurance and Selective Insurance Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International General Insurance	$516.90 million	2.05	$127.15 million	$2.49	9.96
Selective Insurance Group	$5.34 billion	0.95	$466.41 million	$8.06	10.58

Selective Insurance Group has higher revenue and earnings than International General Insurance. International General Insurance 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.

Risk and Volatility

International General Insurance has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International General Insurance	20.68%	17.03%	5.45%
Selective Insurance Group	9.10%	14.51%	3.22%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for International General Insurance and Selective Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International General Insurance	1	0	2	0	2.33
Selective Insurance Group	1	4	2	0	2.14

International General Insurance presently has a consensus price target of $30.00, suggesting a potential upside of 20.97%. Selective Insurance Group has a consensus price target of $99.33, suggesting a potential upside of 16.52%. Given International General Insurance’s stronger consensus rating and higher possible upside, research analysts plainly believe International General Insurance is more favorable than Selective Insurance Group.

About International General Insurance

International General Insurance Holdings Ltd. engages in the provision of specialty insurance and reinsurance solutions worldwide. The company operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance. It is involved in underwriting a portfolio of specialty risks, including energy, property, construction and engineering, ports and terminals, general aviation, political violence, professional lines, financial institutions, motor, marine liability, contingency, marine, treaty, and casualty insurance and reinsurance. The company was founded in 2001 and is based in Amman, Jordan.

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.