Contrasting RLI Corp. (NYSE:RLI) & Its Rivals

RLI Corp. (NYSE: RLI) is one of 91 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its rivals? We will compare RLI Corp. to similar companies based on the strength of its valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for RLI Corp. and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RLI Corp. 1 4 0 0 1.80
RLI Corp. Competitors 627 2299 2194 45 2.32

RLI Corp. presently has a consensus price target of $41.67, suggesting a potential downside of 29.77%. As a group, “Property & Casualty Insurance” companies have a potential upside of 6.08%. Given RLI Corp.’s rivals stronger consensus rating and higher probable upside, analysts plainly believe RLI Corp. has less favorable growth aspects than its rivals.

Dividends

RLI Corp. pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. RLI Corp. pays out 46.7% of its earnings in the form of a dividend. As a group, “Property & Casualty Insurance” companies pay a dividend yield of 1.3% and pay out 13.3% of their earnings in the form of a dividend. RLI Corp. has raised its dividend for 40 consecutive years.

Volatility & Risk

RLI Corp. has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, RLI Corp.’s rivals have a beta of 0.92, suggesting that their average stock price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

83.2% of RLI Corp. shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 6.1% of RLI Corp. shares are owned by company insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares RLI Corp. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RLI Corp. 9.97% 8.53% 2.57%
RLI Corp. Competitors 8.94% 3.71% 2.26%

Earnings and Valuation

This table compares RLI Corp. and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
RLI Corp. $816.33 million $114.92 million 32.96
RLI Corp. Competitors $11.51 billion $1.16 billion 229.37

RLI Corp.’s rivals have higher revenue and earnings than RLI Corp.. RLI Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

RLI Corp. rivals beat RLI Corp. on 9 of the 15 factors compared.

RLI Corp. Company Profile

RLI Corp. is a specialty insurance company. The Company underwrites selected property and casualty insurance through subsidiaries, as well as offers insurance coverages in both the specialty admitted, and excess and surplus markets. It operates through Casualty, Property and Surety segments. Its Casualty segment consists of commercial and personal umbrella, general liability, commercial transportation, professional services, small commercial, executive products, medical professional liability and other casualty businesses. Its property segment consists of commercial property, marine, specialty personal, property reinsurance and crop reinsurance businesses. Its surety segment consists of miscellaneous, commercial, contract and energy businesses. The Company conducts its operations principally through three insurance companies: RLI Insurance Company (RLI Ins.), Mt. Hawley Insurance Company (Mt. Hawley) and Contractors Bonding and Insurance Company (CBIC).

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