HCI Group, Inc. (HCI) vs Palomar Holdings, Inc. (PLMR)

HCI Group, Inc. and Palomar Holdings, Inc. are both Insurance Property & Casualty companies. Palomar Holdings, Inc. is the larger, with a market value of $3.3B against $2.2B — 1.5× the size. HCI Group, Inc. trades at the lower P/E: 7.3× against 16.2×. Palomar Holdings, Inc. grew revenue faster over the last twelve months: 60.0% against 22.8%. HCI Group, Inc. has the higher net margin (31.3% vs 18.6%) and the higher return on invested capital (79.2% vs 13.5%). Across the 22 metrics below, HCI Group, Inc. leads on 19 and Palomar Holdings, Inc. on 3.

Valuation

Metric HCI PLMR Insurance Property & Casualty median
P/E 7.30 16.17 10.29
P/S 2.25 2.99 1.17
P/B 1.83 3.33 1.83
Price to free cash flow 5.27 8.00 7.48
EV/EBITDA 2.83 13.05 7.49
EV/Sales 1.40 3.25 1.13
Earnings yield 13.69% 6.19% 9.50%
Free cash flow yield 18.99% 12.50% 13.29%

Profitability

Metric HCI PLMR Insurance Property & Casualty median
Gross margin 59.73% 24.87% 41.16%
Operating margin 48.84% 24.87% 15.09%
Net margin 31.32% 18.61% 11.51%
Free cash flow margin 42.99% 37.41% 17.59%
Return on equity 30.46% 22.23% 18.19%
Return on assets 11.92% 5.98% 3.74%
Return on invested capital 79.17% 13.54% 12.06%

Growth

Metric HCI PLMR Insurance Property & Casualty median
Revenue growth (TTM) 22.77% 59.98% 8.69%
EPS growth (last fiscal year) 155.57% 60.04% —
Revenue growth, 5-year CAGR 23.75% 39.06% 9.23%
Net income growth, 5-year CAGR 61.50% 99.37% 10.09%

Health

Metric HCI PLMR Insurance Property & Casualty median
Debt to equity 0.06 0.30 0.25
Current ratio 0.69 0.50 0.42
Net debt to EBITDA (2.56) (0.41) 0.08

Dividend

Metric HCI PLMR Insurance Property & Casualty median
Dividend yield 1.76% — 2.79%
Payout ratio 7.62 0.00 0.27

Size

Metric HCI PLMR Insurance Property & Casualty median
Market cap 2.20b 3.31b 2.44b

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