Selective Insurance Group (NASDAQ:SIGI) vs. Sampo (OTCMKTS:SAXPY) Head to Head Analysis

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

Dividends

Sampo pays an annual dividend of $0.31 per share and has a dividend yield of 1.3%. Selective Insurance Group pays an annual dividend of $1.72 per share and has a dividend yield of 2.0%. Sampo pays out 22.3% of its earnings in the form of a dividend. Selective Insurance Group pays out 26.5% 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. Selective Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sampo	N/A	19.32%	5.57%
Selective Insurance Group	7.78%	12.96%	2.82%

Risk and Volatility

Sampo has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Selective Insurance Group has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Sampo and Selective Insurance Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sampo	0	2	0	1	2.67
Selective Insurance Group	1	6	1	0	2.00

Selective Insurance Group has a consensus target price of $81.60, suggesting a potential downside of 4.54%. Given Selective Insurance Group’s higher possible upside, analysts plainly believe Selective Insurance Group is more favorable than Sampo.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sampo	$2.47 billion	50.33	$1.25 billion	$1.39	16.74
Selective Insurance Group	$4.86 billion	1.06	$207.01 million	$6.49	13.17

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

Insider and Institutional Ownership

0.0% of Sampo shares are held by institutional investors. Comparatively, 82.9% of Selective Insurance Group shares are held by institutional investors. 1.5% of Selective Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Sampo

Sampo Oyj, together with its subsidiaries, engages in the provision of non-life insurance products and services in Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, and the United Kingdom. The company operates through If, Topdanmark, Hastings, Mandatum, and Holding segments. It offers property, casualty, liability, accident, sickness, household, homeowner, motor, travel, marine, aviation, transport, forest, livestock, health, workers compensation, car, van, and bike insurance services, as well as reinsurance services. The company was founded in 1909 and is based in Helsinki, Finland.

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.