Mercury General Corporation (MCY) vs Old Republic International Corporation (ORI)

Mercury General Corporation and Old Republic International Corporation are both Insurance Property & Casualty companies. Old Republic International Corporation is the larger, with a market value of $9.2B against $5.4B — 1.7× the size. Mercury General Corporation trades at the lower P/E: 5.9× against 8.1×. Old Republic International Corporation grew revenue faster over the last twelve months: 12.1% against 9.95%. Mercury General Corporation has the higher net margin (14.8% vs 11.7%) and the higher return on invested capital (35.8% vs 12.1%). Both pay a dividend; Old Republic International Corporation yields more (3.63% vs 3.17%). Across the 23 metrics below, Mercury General Corporation leads on 19 and Old Republic International Corporation on 4.

Valuation

Metric MCY ORI Insurance Property & Casualty median
P/E 5.88 8.06 10.29
P/S 0.87 0.93 1.17
P/B 1.94 1.49 1.83
Price to free cash flow 4.28 7.07 7.48
EV/EBITDA 3.73 7.11 7.49
EV/Sales 0.75 1.12 1.13
Earnings yield 17.02% 12.41% 9.50%
Free cash flow yield 23.34% 14.14% 13.29%

Profitability

Metric MCY ORI Insurance Property & Casualty median
Gross margin 26.12% 15.79% 41.16%
Operating margin 18.78% 15.79% 15.09%
Net margin 14.77% 11.71% 11.51%
Free cash flow margin 20.26% 13.17% 17.59%
Return on equity 38.99% 18.52% 18.19%
Return on assets 9.55% 3.74% 3.74%
Return on invested capital 35.81% 12.06% 12.06%

Growth

Metric MCY ORI Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 12.12% 8.69%
EPS growth (last fiscal year) 15.62% 14.81% —
Revenue growth, 5-year CAGR 9.63% 4.98% 9.23%
Net income growth, 5-year CAGR 7.63% 10.86% 10.09%

Health

Metric MCY ORI Insurance Property & Casualty median
Debt to equity 0.33 0.38 0.25
Current ratio 0.42 0.19 0.42
Net debt to EBITDA (0.97) 1.04 0.08

Dividend

Metric MCY ORI Insurance Property & Casualty median
Dividend yield 3.17% 3.63% 2.79%
Payout ratio 0.57 0.36 0.27

Size

Metric MCY ORI Insurance Property & Casualty median
Market cap 5.44b 9.16b 2.44b

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