Contrasting Progressive Corporation (The) (PGR) and Safety Insurance Group (NASDAQ:SAFT)

Progressive Corporation (The) (NYSE: PGR) and Safety Insurance Group (NASDAQ:SAFT) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitabiliy.

Analyst Ratings

This is a summary of current ratings and price targets for Progressive Corporation (The) and Safety Insurance Group, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Progressive Corporation (The)25512.38
Safety Insurance Group01002.00

Progressive Corporation (The) presently has a consensus target price of $44.15, indicating a potential downside of 4.76%. Safety Insurance Group has a consensus target price of $60.00, indicating a potential downside of 15.37%. Given Progressive Corporation (The)’s stronger consensus rating and higher probable upside, analysts clearly believe Progressive Corporation (The) is more favorable than Safety Insurance Group.

Profitability

This table compares Progressive Corporation (The) and Safety Insurance Group’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Progressive Corporation (The)5.50%15.62%3.78%
Safety Insurance Group7.75%9.42%3.61%

Dividends

Progressive Corporation (The) pays an annual dividend of $0.68 per share and has a dividend yield of 1.5%. Safety Insurance Group pays an annual dividend of $2.80 per share and has a dividend yield of 3.9%. Progressive Corporation (The) pays out 28.8% of its earnings in the form of a dividend. Safety Insurance Group pays out 66.4% 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. Safety Insurance Group has raised its dividend for 3 consecutive years. Safety Insurance Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Progressive Corporation (The) has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

79.5% of Progressive Corporation (The) shares are held by institutional investors. Comparatively, 79.6% of Safety Insurance Group shares are held by institutional investors. 0.6% of Progressive Corporation (The) shares are held by insiders. Comparatively, 6.2% of Safety Insurance Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Progressive Corporation (The) and Safety Insurance Group’s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioEBITDAEarnings Per SharePrice/Earnings Ratio
Progressive Corporation (The)$24.18 billion1.11$2.08 billion$2.3619.64
Safety Insurance Group$824.76 million1.31$107.60 million$4.2216.80

Progressive Corporation (The) has higher revenue and earnings than Safety Insurance Group. Safety Insurance Group is trading at a lower price-to-earnings ratio than Progressive Corporation (The), indicating that it is currently the more affordable of the two stocks.

Summary

Progressive Corporation (The) beats Safety Insurance Group on 11 of the 18 factors compared between the two stocks.

Progressive Corporation (The) Company Profile

The Progressive Corporation is an insurance holding company. The Company’s insurance subsidiaries and affiliates provide personal and commercial automobile and property insurance, other specialty property-casualty insurance and related services. The Company operates through the Personal Lines, Commercial Lines and Property segments. The Company’s Personal Lines segment writes insurance for personal autos, and recreational and other vehicles. The Commercial Lines business writes primary liability, physical damage and other auto-related insurance for automobiles and trucks owned and/or operated predominately by small businesses as a part of the commercial auto market. ASI is a homeowner carrier in the United States, which specializes in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance. The Company’s service business includes Commercial Auto Insurance Procedures/Plans (CAIP) and Commission-based businesses.

Safety Insurance Group Company Profile

Safety Insurance Group, Inc. is a provider of private passenger automobile insurance. The Company offers a portfolio of property and casualty insurance products. The Company is engaged in property and casualty insurance operations. The Company’s product line includes private passenger automobile, commercial automobile, homeowners, business owners’ policies, personal umbrella, dwelling fire, commercial umbrella, inland marine and watercraft. The Company operates through its insurance company subsidiaries, Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company. Private passenger automobile policies provide coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured’s car occupants, and physical damage coverage for an insured’s own vehicle for collision or other perils. Commercial automobile policies provide coverage for bodily injury and property damage to others.

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