Hagerty, Inc. (HGTY) vs RLI Corp. (RLI)

Hagerty, Inc. and RLI Corp. are both Insurance Property & Casualty companies. RLI Corp. is the larger, with a market value of $5.2B against $4.7B — 1.1× the size. RLI Corp. trades at the lower P/E: 11.7× against 84.8×. RLI Corp. grew revenue faster over the last twelve months: 8.69% against 3.75%. RLI Corp. has the higher net margin (22.2% vs 1.25%) and the higher return on invested capital (17.4% vs 0.00%). Across the 22 metrics below, Hagerty, Inc. leads on 12 and RLI Corp. on 10.

Valuation

Metric HGTY RLI Insurance Property & Casualty median
P/E 84.81 11.70 10.29
P/S 0.98 2.59 1.17
P/B 2.13 2.92 1.83
Price to free cash flow 4.96 9.90 7.48
EV/EBITDA 2.03 10.10 7.49
EV/Sales 0.32 2.88 1.13
Earnings yield 1.18% 8.55% 9.50%
Free cash flow yield 20.16% 10.10% 13.29%

Profitability

Metric HGTY RLI Insurance Property & Casualty median
Gross margin 100.00% 35.51% 41.16%
Operating margin 13.39% 28.50% 15.09%
Net margin 1.25% 22.22% 11.51%
Free cash flow margin 19.68% 26.19% 17.59%
Return on equity 2.88% 25.16% 18.19%
Return on assets 0.84% 7.07% 3.74%
Return on invested capital 0.00% 17.43% 12.06%

Growth

Metric HGTY RLI Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 8.69% 8.69%
EPS growth (last fiscal year) 270.00% 16.84% —
Revenue growth, 5-year CAGR 23.86% 13.86% 9.23%
Net income growth, 5-year CAGR 32.47% 20.75% 10.09%

Health

Metric HGTY RLI Insurance Property & Casualty median
Debt to equity 0.40 0.17 0.25
Current ratio 1.53 0.26 0.42
Net debt to EBITDA (3.42) 0.09 0.08

Dividend

Metric HGTY RLI Insurance Property & Casualty median
Dividend yield — 2.08% 2.79%
Payout ratio 0.00 0.07 0.27

Size

Metric HGTY RLI Insurance Property & Casualty median
Market cap 4.67b 5.15b 2.44b

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