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

Mercury General Corporation and RLI Corp. are both Insurance Property & Casualty companies. RLI Corp. is the larger, with a market value of $6.4B against $4.7B — 1.4× the size. Mercury General Corporation trades at the lower P/E: 7.3× against 16.2×. Mercury General Corporation grew revenue faster over the last twelve months: 5.42% against 4.65%. RLI Corp. has the higher net margin (20.3% vs 10.5%) and the lower return on invested capital (16.5% vs 24.8%). Both pay a dividend; Mercury General Corporation yields more (1.50% vs 0.75%). Across the 21 metrics below, Mercury General Corporation leads on 13 and RLI Corp. on 8.

Valuation

Metric MCY RLI Insurance Property & Casualty median
P/E 7.28 16.22 12.17
P/S 0.76 3.29 1.26
P/B 1.67 3.77 1.85
Price to free cash flow 4.05 12.02 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 13.73% 6.16% 8.20%
Free cash flow yield 24.70% 8.32% 11.86%

Profitability

Metric MCY RLI Insurance Property & Casualty median
Gross margin 21.11% 33.49% 37.39%
Operating margin 13.37% 26.42% 14.67%
Net margin 10.47% 20.34% 10.16%
Free cash flow margin 18.84% 27.37% 18.60%
Return on equity 25.52% 22.13% 16.59%
Return on assets 6.52% 6.23% 3.38%
Return on invested capital 24.80% 16.47% 9.43%

Growth

Metric MCY RLI Insurance Property & Casualty median
Revenue growth (TTM) 5.42% 4.65% 5.70%
EPS growth (last fiscal year) 15.62% 16.84% 39.61%
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 0.20 0.18 0.25
Current ratio 0.35 0.25 0.49
Net debt to EBITDA (0.97) 0.09 0.08

Dividend

Metric MCY RLI Insurance Property & Casualty median
Dividend yield 1.50% 0.75% 1.56%
Payout ratio 0.11 0.12 0.15

Size

Metric MCY RLI Insurance Property & Casualty median
Market cap 4.68b 6.40b 2.64b

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