RLI vs. ERIE, MKL, WRB, CINF, FNF, CNA, ORI, AXS, FAF, and SIGI
Should you be buying RLI stock or one of its competitors? The main competitors of RLI include Erie Indemnity (ERIE), Markel Group (MKL), W. R. Berkley (WRB), Cincinnati Financial (CINF), Fidelity National Financial (FNF), CNA Financial (CNA), Old Republic International (ORI), AXIS Capital (AXS), First American Financial (FAF), and Selective Insurance Group (SIGI). These companies are all part of the "property & casualty insurance" industry.
Erie Indemnity (NASDAQ:ERIE) and RLI (NYSE:RLI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, media sentiment, earnings, community ranking and dividends.
RLI has a consensus price target of $164.50, suggesting a potential upside of 11.87%. Given Erie Indemnity's higher probable upside, analysts clearly believe RLI is more favorable than Erie Indemnity.
Erie Indemnity pays an annual dividend of $5.10 per share and has a dividend yield of 1.2%. RLI pays an annual dividend of $1.16 per share and has a dividend yield of 0.8%. Erie Indemnity pays out 55.1% of its earnings in the form of a dividend. RLI pays out 16.0% 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. Erie Indemnity has increased its dividend for 35 consecutive years and RLI has increased its dividend for 50 consecutive years.
In the previous week, RLI had 38 more articles in the media than Erie Indemnity. MarketBeat recorded 48 mentions for RLI and 10 mentions for Erie Indemnity. RLI's average media sentiment score of 0.52 beat Erie Indemnity's score of 0.32 indicating that Erie Indemnity is being referred to more favorably in the media.
33.7% of Erie Indemnity shares are owned by institutional investors. Comparatively, 77.9% of RLI shares are owned by institutional investors. 45.8% of Erie Indemnity shares are owned by company insiders. Comparatively, 5.1% of RLI shares are owned 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.
Erie Indemnity has higher revenue and earnings than RLI. RLI is trading at a lower price-to-earnings ratio than Erie Indemnity, indicating that it is currently the more affordable of the two stocks.
RLI has a net margin of 20.78% compared to RLI's net margin of 14.26%. RLI's return on equity of 29.60% beat Erie Indemnity's return on equity.
Erie Indemnity has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, RLI has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.
RLI received 23 more outperform votes than Erie Indemnity when rated by MarketBeat users. However, 63.59% of users gave Erie Indemnity an outperform vote while only 55.58% of users gave RLI an outperform vote.
Summary
Erie Indemnity beats RLI on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RLI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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