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 ($5.6B and $5.5B). Mercury General Corporation trades at the lower P/E: 6.1× against 12.8×. 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 (1.24% vs 0.85%). 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 6.08 12.83 10.75
P/S 0.90 2.84 1.21
P/B 2.01 3.20 1.99
Price to free cash flow 4.43 10.86 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 16.46% 7.79% 9.08%
Free cash flow yield 22.57% 9.21% 12.11%

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% 17.46%
Return on equity 38.99% 25.16% 17.34%
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% 8.02%
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 0.33 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 1.24% 0.85% 1.50%
Payout ratio 0.08 0.11 0.14

Size

Metric MCY RLI Insurance Property & Casualty median
Market cap 5.64b 5.46b 2.67b

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