Erie Indemnity Company (ERIE) vs Neptune Insurance Holdings Inc. (NP)

Erie Indemnity Company and Neptune Insurance Holdings Inc. are both Insurance Brokers companies. Erie Indemnity Company is the larger, with a market value of $10.2B against $3.7B — 2.7× the size. Erie Indemnity Company trades at the lower P/E: 18.0× against 110×. Neptune Insurance Holdings Inc. has the higher net margin (20.6% vs 14.0%) and the lower return on invested capital (0.00% vs 21.1%). Across the 18 metrics below, Erie Indemnity Company leads on 11 and Neptune Insurance Holdings Inc. on 7.

Valuation

Metric ERIE NP Insurance Brokers median
P/E 18.00 110.04 25.35
P/S 2.50 20.85 2.10
P/B 4.18 n/m 2.81
Price to free cash flow 18.62 55.88 18.44
EV/EBITDA 13.76 50.53 12.36
EV/Sales 2.46 21.83 3.00
Earnings yield 5.56% 0.91% 2.64%
Free cash flow yield 5.37% 1.79% 2.30%

Profitability

Metric ERIE NP Insurance Brokers median
Gross margin 17.90% 100.00% 42.95%
Operating margin 17.90% 40.72% 15.37%
Net margin 14.01% 20.59% 8.77%
Free cash flow margin 13.43% 37.32% 3.89%
Return on equity 24.81% (12.73%) 0.00%
Return on assets 17.26% 73.26% 2.23%
Return on invested capital 21.10% 0.00% 5.27%

Growth

Metric ERIE NP Insurance Brokers median
Revenue growth (TTM) 3.67% — 7.09%
EPS growth (last fiscal year) (6.88%) (170.16%) —
Revenue growth, 5-year CAGR 9.90% — 9.30%
Net income growth, 5-year CAGR 13.78% — 0.00%

Health

Metric ERIE NP Insurance Brokers median
Debt to equity 0.00 (1.08) 0.19
Current ratio 1.56 2.07 1.55
Net debt to EBITDA (0.44) 2.65 0.89

Dividend

Metric ERIE NP Insurance Brokers median
Dividend yield 1.36% — 1.36%
Payout ratio 0.69 — 0.00

Size

Metric ERIE NP Insurance Brokers median
Market cap 10.20b 3.72b 1.44b

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