Mercury General Corporation (MCY) vs Palomar Holdings, Inc. (PLMR)

Mercury General Corporation and Palomar Holdings, Inc. are both Insurance Property & Casualty companies. Mercury General Corporation is the larger, with a market value of $5.4B against $3.3B — 1.6× the size. Mercury General Corporation trades at the lower P/E: 5.9× against 16.2×. Palomar Holdings, Inc. grew revenue faster over the last twelve months: 60.0% against 9.95%. Palomar Holdings, Inc. has the higher net margin (18.6% vs 14.8%) and the lower return on invested capital (13.5% vs 35.8%). Across the 22 metrics below, Mercury General Corporation leads on 13 and Palomar Holdings, Inc. on 9.

Valuation

Metric MCY PLMR Insurance Property & Casualty median
P/E 5.88 16.17 10.29
P/S 0.87 2.99 1.17
P/B 1.94 3.33 1.83
Price to free cash flow 4.28 8.00 7.48
EV/EBITDA 3.73 13.05 7.49
EV/Sales 0.75 3.25 1.13
Earnings yield 17.02% 6.19% 9.50%
Free cash flow yield 23.34% 12.50% 13.29%

Profitability

Metric MCY PLMR Insurance Property & Casualty median
Gross margin 26.12% 24.87% 41.16%
Operating margin 18.78% 24.87% 15.09%
Net margin 14.77% 18.61% 11.51%
Free cash flow margin 20.26% 37.41% 17.59%
Return on equity 38.99% 22.23% 18.19%
Return on assets 9.55% 5.98% 3.74%
Return on invested capital 35.81% 13.54% 12.06%

Growth

Metric MCY PLMR Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 59.98% 8.69%
EPS growth (last fiscal year) 15.62% 60.04% —
Revenue growth, 5-year CAGR 9.63% 39.06% 9.23%
Net income growth, 5-year CAGR 7.63% 99.37% 10.09%

Health

Metric MCY PLMR Insurance Property & Casualty median
Debt to equity 0.33 0.30 0.25
Current ratio 0.42 0.50 0.42
Net debt to EBITDA (0.97) (0.41) 0.08

Dividend

Metric MCY PLMR Insurance Property & Casualty median
Dividend yield 3.17% — 2.79%
Payout ratio 0.57 0.00 0.27

Size

Metric MCY PLMR Insurance Property & Casualty median
Market cap 5.44b 3.31b 2.44b

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