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

Hagerty, Inc. and RLI Corp. are both Insurance Property & Casualty companies. Hagerty, Inc. and RLI Corp. are of similar size ($5.5B and $5.3B). RLI Corp. trades at the lower P/E: 12.8× against 95.6×. 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 20 metrics below, Hagerty, Inc. leads on 10 and RLI Corp. on 10.

Valuation

Metric HGTY RLI Insurance Property & Casualty median
P/E 95.63 12.83 10.75
P/S 1.10 2.84 1.21
P/B 2.40 3.20 1.99
Price to free cash flow 5.59 10.86 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.05% 7.79% 9.08%
Free cash flow yield 17.88% 9.21% 12.11%

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% 17.46%
Return on equity 2.88% 25.16% 17.34%
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% 8.02%
EPS growth (last fiscal year) 270.00% 16.84% 39.61%
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 — 0.85% 1.50%
Payout ratio — 0.11 0.14

Size

Metric HGTY RLI Insurance Property & Casualty median
Market cap 5.26b 5.46b 2.67b

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