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 $12.8B against $8.0B — 1.6× the size. CNA Financial Corporation trades at the lower P/E: 10.5× against 11.0×. 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 (2.96% vs 1.63%). Across the 21 metrics below, The Hanover Insurance Group, Inc. leads on 12 and CNA Financial Corporation on 9.

Valuation

Metric CNA THG Insurance Property & Casualty median
P/E 10.53 11.02 10.75
P/S 0.86 1.21 1.21
P/B 1.16 2.22 1.99
Price to free cash flow 5.72 6.51 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.50% 9.08% 9.08%
Free cash flow yield 17.47% 15.37% 12.11%

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% 17.46%
Return on equity 11.32% 21.94% 17.34%
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% 8.02%
EPS growth (last fiscal year) 33.24% 55.21% 39.61%
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 2.96% 1.63% 1.50%
Payout ratio 0.31 0.18 0.14

Size

Metric CNA THG Insurance Property & Casualty median
Market cap 12.80b 7.95b 2.67b

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