Erie Indemnity Company (ERIE) vs Willis Towers Watson Public Limited Company (WTW)

Erie Indemnity Company and Willis Towers Watson Public Limited Company are both Insurance Brokers companies. Willis Towers Watson Public Limited Company is the larger, with a market value of $27.3B against $10.2B — 2.7× the size. Erie Indemnity Company trades at the lower P/E: 18.0× against 18.0×. Erie Indemnity Company grew revenue faster over the last twelve months: 3.67% against 3.00%. Willis Towers Watson Public Limited Company has the higher net margin (15.5% vs 14.0%) and the lower return on invested capital (11.1% vs 21.1%). Both pay a dividend; Erie Indemnity Company yields more (1.36% vs 1.28%). Across the 23 metrics below, Erie Indemnity Company leads on 15 and Willis Towers Watson Public Limited Company on 8.

Valuation

Metric ERIE WTW Insurance Brokers median
P/E 18.00 18.00 25.35
P/S 2.50 2.74 2.10
P/B 4.18 3.56 2.81
Price to free cash flow 18.62 35.57 18.44
EV/EBITDA 13.76 12.19 12.36
EV/Sales 2.46 3.22 3.00
Earnings yield 5.56% 5.55% 2.64%
Free cash flow yield 5.37% 2.81% 2.30%

Profitability

Metric ERIE WTW Insurance Brokers median
Gross margin 17.90% 100.00% 42.95%
Operating margin 17.90% 22.23% 15.37%
Net margin 14.01% 15.49% 8.77%
Free cash flow margin 13.43% 16.72% 3.89%
Return on equity 24.81% 19.62% 0.00%
Return on assets 17.26% 5.30% 2.23%
Return on invested capital 21.10% 11.08% 5.27%

Growth

Metric ERIE WTW Insurance Brokers median
Revenue growth (TTM) 3.67% 3.00% 7.09%
EPS growth (last fiscal year) (6.88%) 1,793.75% —
Revenue growth, 5-year CAGR 9.90% 2.42% 9.30%
Net income growth, 5-year CAGR 13.78% 10.01% 0.00%

Health

Metric ERIE WTW Insurance Brokers median
Debt to equity 0.00 0.84 0.19
Current ratio 1.56 1.68 1.55
Net debt to EBITDA (0.44) 1.20 0.89

Dividend

Metric ERIE WTW Insurance Brokers median
Dividend yield 1.36% 1.28% 1.36%
Payout ratio 0.69 0.34 0.00

Size

Metric ERIE WTW Insurance Brokers median
Market cap 10.20b 27.27b 1.44b

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