Mercury General Corporation (MCY) vs Skyward Specialty Insurance Group, Inc. (SKWD)

Mercury General Corporation and Skyward Specialty Insurance Group, Inc. are both Insurance Property & Casualty companies. Mercury General Corporation is the larger, with a market value of $4.7B against $2.8B — 1.6× the size. Mercury General Corporation trades at the lower P/E: 7.1× against 13.7×. Skyward Specialty Insurance Group, Inc. grew revenue faster over the last twelve months: 35.3% against 5.42%. Skyward Specialty Insurance Group, Inc. has the higher net margin (10.6% vs 10.5%) and the lower return on invested capital (11.8% vs 24.8%). Across the 18 metrics below, Mercury General Corporation leads on 11 and Skyward Specialty Insurance Group, Inc. on 7.

Valuation

Metric MCY SKWD Insurance Property & Casualty median
P/E 7.09 13.73 11.90
P/S 0.74 1.49 1.24
P/B 1.63 2.11 1.86
Price to free cash flow 3.94 6.22 7.91
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 14.10% 7.28% 8.14%
Free cash flow yield 25.35% 16.07% 11.91%

Profitability

Metric MCY SKWD Insurance Property & Casualty median
Gross margin 21.11% 44.33% 39.44%
Operating margin 13.37% 14.93% 14.71%
Net margin 10.47% 10.62% 10.47%
Free cash flow margin 18.84% 24.42% 18.60%
Return on equity 25.52% 17.14% 16.87%
Return on assets 6.52% 3.27% 3.49%
Return on invested capital 24.80% 11.84% 11.84%

Growth

Metric MCY SKWD Insurance Property & Casualty median
Revenue growth (TTM) 5.42% 35.27% 5.51%
EPS growth (last fiscal year) 15.62% 41.81% 39.61%
Revenue growth, 5-year CAGR 9.63% — 9.23%
Net income growth, 5-year CAGR 7.63% — 10.09%

Health

Metric MCY SKWD Insurance Property & Casualty median
Debt to equity 0.20 0.33 0.25
Current ratio 0.35 0.52 0.49
Net debt to EBITDA (0.97) (0.43) 0.08

Dividend

Metric MCY SKWD Insurance Property & Casualty median
Dividend yield 1.54% — 1.59%
Payout ratio 0.11 — 0.15

Size

Metric MCY SKWD Insurance Property & Casualty median
Market cap 4.68b 2.84b 2.62b

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