Erie Indemnity Company (ERIE) vs Goosehead Insurance (GSHD)

Erie Indemnity Company and Goosehead Insurance are both Insurance Brokers companies. Erie Indemnity Company is the larger, with a market value of $11.1B against $1.6B — 6.9× the size. Erie Indemnity Company trades at the lower P/E: 19.7× against 32.4×. Goosehead Insurance grew revenue faster over the last twelve months: 17.7% against 3.67%. Erie Indemnity Company has the higher net margin (14.0% vs 8.78%) and the lower return on invested capital (21.1% vs 59.6%). Only Erie Indemnity Company pays a dividend (2.40%). Across the 20 metrics below, Erie Indemnity Company leads on 10 and Goosehead Insurance on 10.

Valuation

Metric ERIE GSHD Insurance Brokers median
P/E 19.67 32.45 25.24
P/S 2.73 2.74 2.73
P/B 4.56 n/m 2.91
Price to free cash flow 20.35 17.99 20.97
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.08% 3.08% 2.41%
Free cash flow yield 4.91% 5.56% 2.15%

Profitability

Metric ERIE GSHD Insurance Brokers median
Gross margin 17.90% 100.00% 42.95%
Operating margin 17.90% 23.31% 15.37%
Net margin 14.01% 8.78% 8.77%
Free cash flow margin 13.43% 15.21% 3.89%
Return on equity 24.81% (22.12%) 0.00%
Return on assets 17.26% 8.37% 2.23%
Return on invested capital 21.10% 59.58% 5.27%

Growth

Metric ERIE GSHD Insurance Brokers median
Revenue growth (TTM) 3.67% 17.74% 7.09%
EPS growth (last fiscal year) (6.88%) (9.57%) (9.12%)
Revenue growth, 5-year CAGR 9.90% 25.57% 9.30%
Net income growth, 5-year CAGR 13.78% 24.55% 0.00%

Health

Metric ERIE GSHD Insurance Brokers median
Debt to equity 0.00 (1.67) 0.19
Current ratio 1.56 1.54 1.55
Net debt to EBITDA (0.44) 2.90 0.89

Dividend

Metric ERIE GSHD Insurance Brokers median
Dividend yield 2.40% 0.00% 1.08%
Payout ratio 0.53 0.00 0.23

Size

Metric ERIE GSHD Insurance Brokers median
Market cap 11.12b 1.62b 1.49b

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