Hagerty, Inc. (HGTY) vs Mercury General Corporation (MCY)

Hagerty, Inc. and Mercury General Corporation are both Insurance Property & Casualty companies. Mercury General Corporation is the larger, with a market value of $5.4B against $4.7B — 1.2× the size. Mercury General Corporation trades at the lower P/E: 5.9× against 84.8×. Mercury General Corporation grew revenue faster over the last twelve months: 9.95% against 3.75%. Mercury General Corporation has the higher net margin (14.8% vs 1.25%) and the higher return on invested capital (35.8% vs 0.00%). Across the 22 metrics below, Mercury General Corporation leads on 14 and Hagerty, Inc. on 8.

Valuation

Metric HGTY MCY Insurance Property & Casualty median
P/E 84.81 5.88 10.29
P/S 0.98 0.87 1.17
P/B 2.13 1.94 1.83
Price to free cash flow 4.96 4.28 7.48
EV/EBITDA 2.03 3.73 7.49
EV/Sales 0.32 0.75 1.13
Earnings yield 1.18% 17.02% 9.50%
Free cash flow yield 20.16% 23.34% 13.29%

Profitability

Metric HGTY MCY Insurance Property & Casualty median
Gross margin 100.00% 26.12% 41.16%
Operating margin 13.39% 18.78% 15.09%
Net margin 1.25% 14.77% 11.51%
Free cash flow margin 19.68% 20.26% 17.59%
Return on equity 2.88% 38.99% 18.19%
Return on assets 0.84% 9.55% 3.74%
Return on invested capital 0.00% 35.81% 12.06%

Growth

Metric HGTY MCY Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 9.95% 8.69%
EPS growth (last fiscal year) 270.00% 15.62% —
Revenue growth, 5-year CAGR 23.86% 9.63% 9.23%
Net income growth, 5-year CAGR 32.47% 7.63% 10.09%

Health

Metric HGTY MCY Insurance Property & Casualty median
Debt to equity 0.40 0.33 0.25
Current ratio 1.53 0.42 0.42
Net debt to EBITDA (3.42) (0.97) 0.08

Dividend

Metric HGTY MCY Insurance Property & Casualty median
Dividend yield — 3.17% 2.79%
Payout ratio 0.00 0.57 0.27

Size

Metric HGTY MCY Insurance Property & Casualty median
Market cap 4.67b 5.44b 2.44b

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