Head-To-Head Analysis: Progressive Corporation (The) (PGR) vs. Safety Insurance Group (NASDAQ:SAFT)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Safety Insurance Group 7.67% 9.33% 3.57%
Progressive Corporation (The) 5.50% 15.62% 3.78%

Volatility & Risk

Safety Insurance Group has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Progressive Corporation (The) has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

79.5% of Safety Insurance Group shares are held by institutional investors. Comparatively, 79.5% of Progressive Corporation (The) shares are held by institutional investors. 4.9% of Safety Insurance Group shares are held by insiders. Comparatively, 0.6% of Progressive Corporation (The) 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.

Dividends

Safety Insurance Group pays an annual dividend of $2.80 per share and has a dividend yield of 3.9%. Progressive Corporation (The) pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Safety Insurance Group pays out 66.7% of its earnings in the form of a dividend. Progressive Corporation (The) pays out 28.8% 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. Progressive Corporation (The) has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Safety Insurance Group and Progressive Corporation (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safety Insurance Group 0 0 0 0 N/A
Progressive Corporation (The) 2 5 5 1 2.38

Progressive Corporation (The) has a consensus target price of $44.15, suggesting a potential downside of 7.38%. Given Progressive Corporation (The)’s higher possible upside, analysts clearly believe Progressive Corporation (The) is more favorable than Safety Insurance Group.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Safety Insurance Group $830.06 million 1.31 $108.63 million $4.20 17.05
Progressive Corporation (The) $24.97 billion 1.11 $2.37 billion $2.36 20.20

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 12 of the 17 factors compared between the two stocks.

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.

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.

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