Hagerty, Inc. (HGTY) vs The Hanover Insurance Group, Inc. (THG)

Hagerty, Inc. and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. The Hanover Insurance Group, Inc. is the larger, with a market value of $8.6B against $6.3B — 1.4× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.7× against 57.0×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.04% against −3.77%. The Hanover Insurance Group, Inc. has the higher net margin (11.0% vs 0.52%) and the higher return on invested capital (15.9% vs 0.00%). Across the 20 metrics below, Hagerty, Inc. leads on 10 and The Hanover Insurance Group, Inc. on 10.

Valuation

Metric HGTY THG Insurance Property & Casualty median
P/E 57.02 11.69 12.17
P/S 1.41 1.26 1.26
P/B 2.93 2.51 1.85
Price to free cash flow 6.96 7.08 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.75% 8.55% 8.20%
Free cash flow yield 14.36% 14.13% 11.86%

Profitability

Metric HGTY THG Insurance Property & Casualty median
Gross margin 100.00% 44.41% 37.39%
Operating margin 18.23% 14.71% 14.67%
Net margin 0.52% 10.97% 10.16%
Free cash flow margin 20.29% 17.85% 18.60%
Return on equity 1.10% 21.83% 16.59%
Return on assets 0.32% 4.43% 3.38%
Return on invested capital 0.00% 15.87% 9.43%

Growth

Metric HGTY THG Insurance Property & Casualty median
Revenue growth (TTM) (3.77%) 5.04% 5.70%
EPS growth (last fiscal year) 270.00% 55.21% 39.61%
Revenue growth, 5-year CAGR 23.86% 6.45% 9.23%
Net income growth, 5-year CAGR 32.47% 13.06% 10.09%

Health

Metric HGTY THG Insurance Property & Casualty median
Debt to equity 0.41 0.25 0.25
Current ratio 1.59 0.39 0.49
Net debt to EBITDA (3.42) 0.11 0.08

Dividend

Metric HGTY THG Insurance Property & Casualty median
Dividend yield — 1.53% 1.56%
Payout ratio — 0.18 0.15

Size

Metric HGTY THG Insurance Property & Casualty median
Market cap 6.31b 8.57b 2.64b

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