Analyzing Safety Insurance Group (NASDAQ:SAFT) & Everest Group (NYSE:EG)

Everest Group (NYSE:EG) and Safety Insurance Group (NASDAQ:SAFT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

Everest Group pays an annual dividend of $8.00 per share and has a dividend yield of 2.0%. Safety Insurance Group pays an annual dividend of $3.60 per share and has a dividend yield of 4.1%. Everest Group pays out 11.9% of its earnings in the form of a dividend. Safety Insurance Group pays out 103.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

92.6% of Everest Group shares are held by institutional investors. Comparatively, 81.0% of Safety Insurance Group shares are held by institutional investors. 1.2% of Everest Group shares are held by company insiders. Comparatively, 2.0% of Safety Insurance Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	18.36%	24.09%	6.32%
Safety Insurance Group	4.96%	5.53%	2.10%

Analyst Ratings

This is a breakdown of recent recommendations for Everest Group and Safety Insurance Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	4	4	1	2.67
Safety Insurance Group	0	0	0	0	N/A

Everest Group currently has a consensus target price of $431.00, indicating a potential upside of 10.39%. Given Everest Group’s higher probable upside, analysts plainly believe Everest Group is more favorable than Safety Insurance Group.

Risk and Volatility

Everest Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Safety Insurance Group has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$15.78 billion	1.08	$2.52 billion	$67.29	5.80
Safety Insurance Group	$1.02 billion	1.29	$18.88 million	$3.47	25.59

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

Summary

Everest Group beats Safety Insurance Group on 12 of the 16 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.

About Safety Insurance Group

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company's private passenger automobile policies offer 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. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella, which offers an excess liability product to clients, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.