Erie Indemnity Company (ERIE) vs Marsh (MRSH)

Erie Indemnity Company and Marsh are both Insurance Brokers companies. Marsh is the larger, with a market value of $81.1B against $10.2B — 8.0× the size. Erie Indemnity Company trades at the lower P/E: 18.0× against 20.8×. Marsh grew revenue faster over the last twelve months: 8.33% against 3.67%. Marsh has the higher net margin (14.2% vs 14.0%) and the lower return on invested capital (18.5% vs 21.1%). Both pay a dividend; Marsh yields more (1.52% vs 1.36%). Across the 23 metrics below, Marsh leads on 12 and Erie Indemnity Company on 11.

Valuation

Metric ERIE MRSH Insurance Brokers median
P/E 18.00 20.82 25.35
P/S 2.50 2.94 2.10
P/B 4.18 5.32 2.81
Price to free cash flow 18.62 17.23 18.44
EV/EBITDA 13.76 12.54 12.36
EV/Sales 2.46 3.12 3.00
Earnings yield 5.56% 4.80% 2.64%
Free cash flow yield 5.37% 5.80% 2.30%

Profitability

Metric ERIE MRSH Insurance Brokers median
Gross margin 17.90% 100.00% 42.95%
Operating margin 17.90% 21.62% 15.37%
Net margin 14.01% 14.24% 8.77%
Free cash flow margin 13.43% 17.06% 3.89%
Return on equity 24.81% 25.34% 0.00%
Return on assets 17.26% 6.73% 2.23%
Return on invested capital 21.10% 18.49% 5.27%

Growth

Metric ERIE MRSH Insurance Brokers median
Revenue growth (TTM) 3.67% 8.33% 7.09%
EPS growth (last fiscal year) (6.88%) 3.06% —
Revenue growth, 5-year CAGR 9.90% 9.39% 9.30%
Net income growth, 5-year CAGR 13.78% 15.59% 0.00%

Health

Metric ERIE MRSH Insurance Brokers median
Debt to equity 0.00 1.22 0.19
Current ratio 1.56 1.14 1.55
Net debt to EBITDA (0.44) 0.58 0.89

Dividend

Metric ERIE MRSH Insurance Brokers median
Dividend yield 1.36% 1.52% 1.36%
Payout ratio 0.69 0.36 0.00

Size

Metric ERIE MRSH Insurance Brokers median
Market cap 10.20b 81.09b 1.44b

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