Selective Insurance Group (NASDAQ:SIGI) and ICC (NASDAQ:ICCH) Critical Analysis

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

Institutional & Insider Ownership

82.9% of Selective Insurance Group shares are held by institutional investors. Comparatively, 46.5% of ICC shares are held by institutional investors. 1.5% of Selective Insurance Group shares are held by insiders. Comparatively, 24.1% of ICC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Selective Insurance Group and ICC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$4.55 billion	1.30	$365.24 million	$5.66	17.17
ICC	$87.93 million	0.83	$4.26 million	$1.72	13.52

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

Volatility & Risk

Selective Insurance Group has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, ICC has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Selective Insurance Group	5.12%	8.75%	1.96%
ICC	4.31%	5.78%	1.77%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Selective Insurance Group and ICC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selective Insurance Group	1	4	2	0	2.14
ICC	0	0	0	0	N/A

Selective Insurance Group currently has a consensus price target of $98.50, suggesting a potential upside of 1.34%. Given Selective Insurance Group’s higher probable upside, equities research analysts clearly believe Selective Insurance Group is more favorable than ICC.

Summary

Selective Insurance Group beats ICC on 12 of the 13 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 ICC

ICC Holdings, Inc., together with its subsidiaries, provides property and casualty insurance products to the food and beverage industry in the United States. It offers commercial multi-peril, liquor liability, workers' compensation, and umbrella liability insurance products. The company markets its products through independent agents in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Utah, and Wisconsin. ICC Holdings, Inc. was founded in 1950 and is headquartered in Rock Island, Illinois.