Analyzing Selective Insurance Group (NASDAQ:SIGI) and Corebridge Financial (NYSE:CRBG)

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

Earnings & Valuation

This table compares Selective Insurance Group and Corebridge Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selective Insurance Group	$5.34 billion	1.00	$466.41 million	$8.06	11.08
Corebridge Financial	$20.46 billion	0.75	-$366.00 million	$1.71	20.16

Selective Insurance Group has higher earnings, but lower revenue than Corebridge Financial. Selective Insurance Group is trading at a lower price-to-earnings ratio than Corebridge Financial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

82.9% of Selective Insurance Group shares are held by institutional investors. Comparatively, 98.3% of Corebridge Financial shares are held by institutional investors. 0.8% of Selective Insurance Group shares are held by insiders. Comparatively, 0.3% of Corebridge Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Selective Insurance Group and Corebridge Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selective Insurance Group	1	4	2	0	2.14
Corebridge Financial	0	5	9	0	2.64

Selective Insurance Group presently has a consensus target price of $101.00, indicating a potential upside of 13.13%. Corebridge Financial has a consensus target price of $38.83, indicating a potential upside of 12.64%. Given Selective Insurance Group’s higher possible upside, research analysts clearly believe Selective Insurance Group is more favorable than Corebridge Financial.

Dividends

Selective Insurance Group pays an annual dividend of $1.72 per share and has a dividend yield of 1.9%. Corebridge Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. Selective Insurance Group pays out 21.3% of its earnings in the form of a dividend. Corebridge Financial pays out 58.5% 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 increased its dividend for 11 consecutive years and Corebridge Financial has increased its dividend for 1 consecutive years.

Risk & Volatility

Selective Insurance Group has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Corebridge Financial has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Selective Insurance Group and Corebridge Financial’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%
Corebridge Financial	4.37%	17.37%	0.52%

Summary

Selective Insurance Group beats Corebridge Financial on 9 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 Corebridge Financial

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index annuities, variable annuities, and retail mutual funds. The Group Retirement segment offers record-keeping services, plan administration and compliance services, and financial planning and advisory solutions to employer-defined contribution plans and their participants, as well as proprietary and non-proprietary annuities, advisory services, and brokerage products. The Life Insurance segment offers term life and universal life insurance in the United States, as well as issues individual life, whole life, and group life insurance in the United Kingdom; and distributes medical insurance in Ireland. The Institutional Markets segment provides stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, Texas. The company operates as a subsidiary of American International Group, Inc.