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

Profitability

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

Net Margins Return on Equity Return on Assets
Selective Insurance Group 6.10% 10.69% 2.34%
Tiptree 5.08% -4.57% -0.93%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Selective Insurance Group $2.47 billion 1.51 $168.82 million $3.11 20.45
Tiptree $581.80 million 0.42 $4.48 million N/A N/A

Selective Insurance Group has higher revenue and earnings than Tiptree.

Institutional and Insider Ownership

78.4% of Selective Insurance Group shares are held by institutional investors. Comparatively, 64.1% of Tiptree shares are held by institutional investors. 3.0% of Selective Insurance Group shares are held by insiders. Comparatively, 23.7% of Tiptree shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Selective Insurance Group pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Tiptree pays an annual dividend of $0.14 per share and has a dividend yield of 2.2%. Selective Insurance Group pays out 23.2% of its earnings in the form of a dividend. Selective Insurance Group has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Selective Insurance Group and Tiptree, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Selective Insurance Group 1 4 0 0 1.80
Tiptree 0 0 0 0 N/A

Selective Insurance Group presently has a consensus target price of $59.00, suggesting a potential downside of 7.23%. Given Selective Insurance Group’s higher probable upside, equities research analysts clearly believe Selective Insurance Group is more favorable than Tiptree.

Volatility and Risk

Selective Insurance Group has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Tiptree has a beta of -0.36, indicating that its stock price is 136% less volatile than the S&P 500.

Summary

Selective Insurance Group beats Tiptree on 10 of the 13 factors compared between the two stocks.

Selective Insurance Group Company Profile

Selective Insurance Group, Inc., together with its subsidiaries, provides insurance products and services in the United States. It operates in four segments: Standard Commercial Lines, Standard Personal Lines, Excess and Surplus (E&S) Lines, and Investments. The company's products and services include property insurance, which covers the financial consequences of accidental loss of an insured's real and/or personal property; and casualty insurance 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 a result of an insured's negligent acts, omissions, or legal liabilities. Its products and services also comprise flood insurance. The company offers its insurance products and services to businesses, non-profit organizations, local government agencies, and individuals through independent retail insurance agents and brokers, and wholesale general agents. In addition, it invests in the premiums collected by Standard Commercial Lines, Standard Personal Lines, and E&S Lines segments on fixed income investments and preferred stocks, equity securities, and alternative investment portfolio. Selective Insurance Group, Inc. was founded in 1925 and is headquartered in Branchville, New Jersey.

Tiptree Company Profile

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. It operates through three segments: Specialty Insurance, Asset Management, and Mortgage. The company provides credit protection insurance, warranty and service contract products, and insurance programs that underwrite niche personal and commercial lines of insurance, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.

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