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 $5.6B against $3.6B — 1.6× the size. Mercury General Corporation trades at the lower P/E: 6.1× against 18.2×. 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%). Both pay a dividend; Mercury General Corporation yields more (1.24% vs 0.32%). 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 6.08 18.20 10.75
P/S 0.90 3.37 1.21
P/B 2.01 3.75 1.99
Price to free cash flow 4.43 9.01 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 16.46% 5.49% 9.08%
Free cash flow yield 22.57% 11.10% 12.11%

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% 17.46%
Return on equity 38.99% 22.23% 17.34%
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% 8.02%
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 0.33 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 1.24% 0.32% 1.50%
Payout ratio 0.08 0.06 0.14

Size

Metric MCY PLMR Insurance Property & Casualty median
Market cap 5.64b 3.62b 2.67b

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