Mercury General Corporation (MCY) vs RLI Corp. (RLI)

Mercury General Corporation and RLI Corp. are both Insurance Property & Casualty companies. Mercury General Corporation and RLI Corp. are of similar size ($5.4B and $5.2B). Mercury General Corporation trades at the lower P/E: 5.9× against 11.7×. Mercury General Corporation grew revenue faster over the last twelve months: 9.95% against 8.69%. RLI Corp. has the higher net margin (22.2% vs 14.8%) and the lower return on invested capital (17.4% vs 35.8%). Both pay a dividend; Mercury General Corporation yields more (3.17% vs 2.08%). Across the 23 metrics below, Mercury General Corporation leads on 15 and RLI Corp. on 8.

Valuation

Metric MCY RLI Insurance Property & Casualty median
P/E 5.88 11.70 10.29
P/S 0.87 2.59 1.17
P/B 1.94 2.92 1.83
Price to free cash flow 4.28 9.90 7.48
EV/EBITDA 3.73 10.10 7.49
EV/Sales 0.75 2.88 1.13
Earnings yield 17.02% 8.55% 9.50%
Free cash flow yield 23.34% 10.10% 13.29%

Profitability

Metric MCY RLI Insurance Property & Casualty median
Gross margin 26.12% 35.51% 41.16%
Operating margin 18.78% 28.50% 15.09%
Net margin 14.77% 22.22% 11.51%
Free cash flow margin 20.26% 26.19% 17.59%
Return on equity 38.99% 25.16% 18.19%
Return on assets 9.55% 7.07% 3.74%
Return on invested capital 35.81% 17.43% 12.06%

Growth

Metric MCY RLI Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 8.69% 8.69%
EPS growth (last fiscal year) 15.62% 16.84% —
Revenue growth, 5-year CAGR 9.63% 13.86% 9.23%
Net income growth, 5-year CAGR 7.63% 20.75% 10.09%

Health

Metric MCY RLI Insurance Property & Casualty median
Debt to equity 0.33 0.17 0.25
Current ratio 0.42 0.26 0.42
Net debt to EBITDA (0.97) 0.09 0.08

Dividend

Metric MCY RLI Insurance Property & Casualty median
Dividend yield 3.17% 2.08% 2.79%
Payout ratio 0.57 0.07 0.27

Size

Metric MCY RLI Insurance Property & Casualty median
Market cap 5.44b 5.15b 2.44b

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