Loews Corporation (L) vs The Progressive Corporation (PGR)

Loews Corporation and The Progressive Corporation are both Insurance Property & Casualty companies. The Progressive Corporation is the larger, with a market value of $117.7B against $21.5B — 5.5× the size. The Progressive Corporation trades at the lower P/E: 10.3× against 12.8×. The Progressive Corporation grew revenue faster over the last twelve months: 10.5% against 3.50%. The Progressive Corporation has the higher net margin (12.8% vs 9.02%) and the higher return on invested capital (23.0% vs 6.03%). Both pay a dividend; The Progressive Corporation yields more (1.71% vs 0.35%). Across the 23 metrics below, The Progressive Corporation leads on 20 and Loews Corporation on 3.

Valuation

Metric L PGR Insurance Property & Casualty median
P/E 12.85 10.29 10.29
P/S 1.15 1.32 1.17
P/B 1.08 3.49 1.83
Price to free cash flow 12.20 7.48 7.48
EV/EBITDA 10.91 8.08 7.49
EV/Sales 1.60 1.41 1.13
Earnings yield 7.78% 9.72% 9.50%
Free cash flow yield 8.20% 13.37% 13.29%

Profitability

Metric L PGR Insurance Property & Casualty median
Gross margin 54.39% 17.21% 41.16%
Operating margin 14.69% 17.21% 15.09%
Net margin 9.02% 12.84% 11.51%
Free cash flow margin 9.45% 17.59% 17.59%
Return on equity 8.78% 34.94% 18.19%
Return on assets 1.96% 9.73% 3.74%
Return on invested capital 6.03% 23.03% 12.06%

Growth

Metric L PGR Insurance Property & Casualty median
Revenue growth (TTM) 3.50% 10.49% 8.69%
EPS growth (last fiscal year) 24.34% 33.54% —
Revenue growth, 5-year CAGR 7.96% 15.50% 9.23%
Net income growth, 5-year CAGR 0.00% 14.77% 10.09%

Health

Metric L PGR Insurance Property & Casualty median
Debt to equity 0.45 0.24 0.25
Current ratio 0.25 0.26 0.42
Net debt to EBITDA 2.88 0.44 0.08

Dividend

Metric L PGR Insurance Property & Casualty median
Dividend yield 0.35% 1.71% 2.79%
Payout ratio 0.05 0.14 0.27

Size

Metric L PGR Insurance Property & Casualty median
Market cap 21.48b 117.67b 2.44b

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