Mercury General Corporation (MCY) vs Selective Insurance Group, Inc. (SIGI)

Mercury General Corporation and Selective Insurance Group, Inc. are both Insurance Property & Casualty companies. Selective Insurance Group, Inc. is the larger, with a market value of $6.0B against $4.7B — 1.3× the size. Mercury General Corporation trades at the lower P/E: 7.3× against 12.2×. Mercury General Corporation grew revenue faster over the last twelve months: 5.42% against 3.99%. Mercury General Corporation has the higher net margin (10.5% vs 9.23%) and the higher return on invested capital (24.8% vs 10.1%). Both pay a dividend; Selective Insurance Group, Inc. yields more (1.70% vs 1.50%). Across the 21 metrics below, Mercury General Corporation leads on 15 and Selective Insurance Group, Inc. on 6.

Valuation

Metric MCY SIGI Insurance Property & Casualty median
P/E 7.28 12.19 12.17
P/S 0.76 1.11 1.26
P/B 1.67 1.85 1.85
Price to free cash flow 4.05 5.24 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 13.73% 8.20% 8.20%
Free cash flow yield 24.70% 19.07% 11.86%

Profitability

Metric MCY SIGI Insurance Property & Casualty median
Gross margin 21.11% 41.83% 37.39%
Operating margin 13.37% 12.84% 14.67%
Net margin 10.47% 9.23% 10.16%
Free cash flow margin 18.84% 20.94% 18.60%
Return on equity 25.52% 15.35% 16.59%
Return on assets 6.52% 3.27% 3.38%
Return on invested capital 24.80% 10.07% 9.43%

Growth

Metric MCY SIGI Insurance Property & Casualty median
Revenue growth (TTM) 5.42% 3.99% 5.70%
EPS growth (last fiscal year) 15.62% 131.89% 39.61%
Revenue growth, 5-year CAGR 9.63% 12.80% 9.23%
Net income growth, 5-year CAGR 7.63% 13.16% 10.09%

Health

Metric MCY SIGI Insurance Property & Casualty median
Debt to equity 0.20 0.26 0.25
Current ratio 0.35 0.25 0.49
Net debt to EBITDA (0.97) 1.32 0.08

Dividend

Metric MCY SIGI Insurance Property & Casualty median
Dividend yield 1.50% 1.70% 1.56%
Payout ratio 0.11 0.21 0.15

Size

Metric MCY SIGI Insurance Property & Casualty median
Market cap 4.68b 6.00b 2.64b

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