Hagerty, Inc. (HGTY) vs Palomar Holdings, Inc. (PLMR)

Hagerty, Inc. and Palomar Holdings, Inc. are both Insurance Property & Casualty companies. Hagerty, Inc. is the larger, with a market value of $4.7B against $3.3B — 1.4× the size. Palomar Holdings, Inc. trades at the lower P/E: 16.2× against 84.8×. Palomar Holdings, Inc. grew revenue faster over the last twelve months: 60.0% against 3.75%. Palomar Holdings, Inc. has the higher net margin (18.6% vs 1.25%) and the higher return on invested capital (13.5% vs 0.00%). Across the 22 metrics below, Palomar Holdings, Inc. leads on 12 and Hagerty, Inc. on 10.

Valuation

Metric HGTY PLMR Insurance Property & Casualty median
P/E 84.81 16.17 10.29
P/S 0.98 2.99 1.17
P/B 2.13 3.33 1.83
Price to free cash flow 4.96 8.00 7.48
EV/EBITDA 2.03 13.05 7.49
EV/Sales 0.32 3.25 1.13
Earnings yield 1.18% 6.19% 9.50%
Free cash flow yield 20.16% 12.50% 13.29%

Profitability

Metric HGTY PLMR Insurance Property & Casualty median
Gross margin 100.00% 24.87% 41.16%
Operating margin 13.39% 24.87% 15.09%
Net margin 1.25% 18.61% 11.51%
Free cash flow margin 19.68% 37.41% 17.59%
Return on equity 2.88% 22.23% 18.19%
Return on assets 0.84% 5.98% 3.74%
Return on invested capital 0.00% 13.54% 12.06%

Growth

Metric HGTY PLMR Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 59.98% 8.69%
EPS growth (last fiscal year) 270.00% 60.04% —
Revenue growth, 5-year CAGR 23.86% 39.06% 9.23%
Net income growth, 5-year CAGR 32.47% 99.37% 10.09%

Health

Metric HGTY PLMR Insurance Property & Casualty median
Debt to equity 0.40 0.30 0.25
Current ratio 1.53 0.50 0.42
Net debt to EBITDA (3.42) (0.41) 0.08

Dividend

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

Size

Metric HGTY PLMR Insurance Property & Casualty median
Market cap 4.67b 3.31b 2.44b

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