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 $7.6B against $4.7B — 1.6× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 10.3× against 84.8×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.57% against 3.75%. The Hanover Insurance Group, Inc. has the higher net margin (11.2% vs 1.25%) and the higher return on invested capital (14.2% vs 0.00%). Across the 22 metrics below, Hagerty, Inc. leads on 12 and The Hanover Insurance Group, Inc. on 10.

Valuation

Metric HGTY THG Insurance Property & Casualty median
P/E 84.81 10.28 10.29
P/S 0.98 1.13 1.17
P/B 2.13 2.07 1.83
Price to free cash flow 4.96 6.07 7.48
EV/EBITDA 2.03 8.07 7.49
EV/Sales 0.32 1.21 1.13
Earnings yield 1.18% 9.73% 9.50%
Free cash flow yield 20.16% 16.47% 13.29%

Profitability

Metric HGTY THG Insurance Property & Casualty median
Gross margin 100.00% 44.76% 41.16%
Operating margin 13.39% 14.98% 15.09%
Net margin 1.25% 11.17% 11.51%
Free cash flow margin 19.68% 18.52% 17.59%
Return on equity 2.88% 21.94% 18.19%
Return on assets 0.84% 4.64% 3.74%
Return on invested capital 0.00% 14.21% 12.06%

Growth

Metric HGTY THG Insurance Property & Casualty median
Revenue growth (TTM) 3.75% 5.57% 8.69%
EPS growth (last fiscal year) 270.00% 55.21% —
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 0.40 0.23 0.25
Current ratio 1.53 0.37 0.42
Net debt to EBITDA (3.42) 0.11 0.08

Dividend

Metric HGTY THG Insurance Property & Casualty median
Dividend yield — 2.64% 2.79%
Payout ratio 0.00 0.37 0.27

Size

Metric HGTY THG Insurance Property & Casualty median
Market cap 4.67b 7.59b 2.44b

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