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 $4.7B against $4.1B — 1.1× the size. Mercury General Corporation trades at the lower P/E: 7.3× against 20.2×. Palomar Holdings, Inc. grew revenue faster over the last twelve months: 60.0% against 5.42%. Palomar Holdings, Inc. has the higher net margin (18.6% vs 10.5%) and the lower return on invested capital (13.5% vs 24.8%). Both pay a dividend; Mercury General Corporation yields more (1.50% vs 0.29%). Across the 21 metrics below, Mercury General Corporation leads on 12 and Palomar Holdings, Inc. on 9.

Valuation

Metric MCY PLMR Insurance Property & Casualty median
P/E 7.28 20.18 12.17
P/S 0.76 3.74 1.26
P/B 1.67 4.16 1.85
Price to free cash flow 4.05 9.99 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 13.73% 4.95% 8.20%
Free cash flow yield 24.70% 10.01% 11.86%

Profitability

Metric MCY PLMR Insurance Property & Casualty median
Gross margin 21.11% 24.87% 37.39%
Operating margin 13.37% 24.87% 14.67%
Net margin 10.47% 18.61% 10.16%
Free cash flow margin 18.84% 37.41% 18.60%
Return on equity 25.52% 22.23% 16.59%
Return on assets 6.52% 5.98% 3.38%
Return on invested capital 24.80% 13.54% 9.43%

Growth

Metric MCY PLMR Insurance Property & Casualty median
Revenue growth (TTM) 5.42% 59.98% 5.70%
EPS growth (last fiscal year) 15.62% 60.04% 39.61%
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 0.20 0.30 0.25
Current ratio 0.35 0.50 0.49
Net debt to EBITDA (0.97) (0.41) 0.08

Dividend

Metric MCY PLMR Insurance Property & Casualty median
Dividend yield 1.50% 0.29% 1.56%
Payout ratio 0.11 0.06 0.15

Size

Metric MCY PLMR Insurance Property & Casualty median
Market cap 4.68b 4.10b 2.64b

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