CNA Financial Corporation (CNA) vs The Hanover Insurance Group, Inc. (THG)

CNA Financial Corporation and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. CNA Financial Corporation is the larger, with a market value of $12.5B against $7.6B — 1.6× the size. CNA Financial Corporation trades at the lower P/E: 10.1× against 10.3×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.57% against 3.41%. The Hanover Insurance Group, Inc. has the higher net margin (11.2% vs 8.16%) and the higher return on invested capital (14.2% vs 7.69%). Both pay a dividend; CNA Financial Corporation yields more (8.30% vs 2.64%). Across the 23 metrics below, The Hanover Insurance Group, Inc. leads on 13 and CNA Financial Corporation on 10.

Valuation

Metric CNA THG Insurance Property & Casualty median
P/E 10.11 10.28 10.29
P/S 0.82 1.13 1.17
P/B 1.11 2.07 1.83
Price to free cash flow 5.49 6.07 7.48
EV/EBITDA 10.03 8.07 7.49
EV/Sales 1.03 1.21 1.13
Earnings yield 9.90% 9.73% 9.50%
Free cash flow yield 18.20% 16.47% 13.29%

Profitability

Metric CNA THG Insurance Property & Casualty median
Gross margin 43.73% 44.76% 41.16%
Operating margin 11.23% 14.98% 15.09%
Net margin 8.16% 11.17% 11.51%
Free cash flow margin 14.96% 18.52% 17.59%
Return on equity 11.32% 21.94% 18.19%
Return on assets 1.78% 4.64% 3.74%
Return on invested capital 7.69% 14.21% 12.06%

Growth

Metric CNA THG Insurance Property & Casualty median
Revenue growth (TTM) 3.41% 5.57% 8.69%
EPS growth (last fiscal year) 33.24% 55.21% —
Revenue growth, 5-year CAGR 6.76% 6.45% 9.23%
Net income growth, 5-year CAGR 13.12% 13.06% 10.09%

Health

Metric CNA THG Insurance Property & Casualty median
Debt to equity 0.27 0.23 0.25
Current ratio 0.23 0.37 0.42
Net debt to EBITDA 1.57 0.11 0.08

Dividend

Metric CNA THG Insurance Property & Casualty median
Dividend yield 8.30% 2.64% 2.79%
Payout ratio 0.45 0.37 0.27

Size

Metric CNA THG Insurance Property & Casualty median
Market cap 12.48b 7.59b 2.44b

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