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

Mercury General Corporation and Selective Insurance Group, Inc. are both Insurance Property & Casualty companies. Mercury General Corporation and Selective Insurance Group, Inc. are of similar size ($5.6B and $5.2B). Mercury General Corporation trades at the lower P/E: 6.1× against 11.1×. Mercury General Corporation grew revenue faster over the last twelve months: 9.95% against 7.01%. Mercury General Corporation has the higher net margin (14.8% vs 8.93%) and the higher return on invested capital (35.8% vs 9.36%). Both pay a dividend; Selective Insurance Group, Inc. yields more (1.93% vs 1.24%). Across the 21 metrics below, Mercury General Corporation leads on 13 and Selective Insurance Group, Inc. on 8.

Valuation

Metric MCY SIGI Insurance Property & Casualty median
P/E 6.08 11.06 10.75
P/S 0.90 0.97 1.21
P/B 2.01 1.54 1.99
Price to free cash flow 4.43 4.44 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 16.46% 9.04% 9.08%
Free cash flow yield 22.57% 22.50% 12.11%

Profitability

Metric MCY SIGI Insurance Property & Casualty median
Gross margin 26.12% 41.16% 41.16%
Operating margin 18.78% 12.46% 15.09%
Net margin 14.77% 8.93% 11.51%
Free cash flow margin 20.26% 21.73% 17.46%
Return on equity 38.99% 14.73% 17.34%
Return on assets 9.55% 3.25% 3.74%
Return on invested capital 35.81% 9.36% 12.06%

Growth

Metric MCY SIGI Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 7.01% 8.02%
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 0.33 0.25 0.25
Current ratio 0.42 0.25 0.42
Net debt to EBITDA (0.97) 1.32 0.08

Dividend

Metric MCY SIGI Insurance Property & Casualty median
Dividend yield 1.24% 1.93% 1.50%
Payout ratio 0.08 0.21 0.14

Size

Metric MCY SIGI Insurance Property & Casualty median
Market cap 5.64b 5.20b 2.67b

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