Mercury General Corporation (MCY) vs The Hanover Insurance Group, Inc. (THG)

Mercury General Corporation and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. The Hanover Insurance Group, Inc. is the larger, with a market value of $7.6B against $5.4B — 1.4× the size. Mercury General Corporation trades at the lower P/E: 5.9× against 10.3×. Mercury General Corporation grew revenue faster over the last twelve months: 9.95% against 5.57%. Mercury General Corporation has the higher net margin (14.8% vs 11.2%) and the higher return on invested capital (35.8% vs 14.2%). Both pay a dividend; Mercury General Corporation yields more (3.17% vs 2.64%). Across the 23 metrics below, Mercury General Corporation leads on 19 and The Hanover Insurance Group, Inc. on 4.

Valuation

Metric MCY THG Insurance Property & Casualty median
P/E 5.88 10.28 10.29
P/S 0.87 1.13 1.17
P/B 1.94 2.07 1.83
Price to free cash flow 4.28 6.07 7.48
EV/EBITDA 3.73 8.07 7.49
EV/Sales 0.75 1.21 1.13
Earnings yield 17.02% 9.73% 9.50%
Free cash flow yield 23.34% 16.47% 13.29%

Profitability

Metric MCY THG Insurance Property & Casualty median
Gross margin 26.12% 44.76% 41.16%
Operating margin 18.78% 14.98% 15.09%
Net margin 14.77% 11.17% 11.51%
Free cash flow margin 20.26% 18.52% 17.59%
Return on equity 38.99% 21.94% 18.19%
Return on assets 9.55% 4.64% 3.74%
Return on invested capital 35.81% 14.21% 12.06%

Growth

Metric MCY THG Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 5.57% 8.69%
EPS growth (last fiscal year) 15.62% 55.21% —
Revenue growth, 5-year CAGR 9.63% 6.45% 9.23%
Net income growth, 5-year CAGR 7.63% 13.06% 10.09%

Health

Metric MCY THG Insurance Property & Casualty median
Debt to equity 0.33 0.23 0.25
Current ratio 0.42 0.37 0.42
Net debt to EBITDA (0.97) 0.11 0.08

Dividend

Metric MCY THG Insurance Property & Casualty median
Dividend yield 3.17% 2.64% 2.79%
Payout ratio 0.57 0.37 0.27

Size

Metric MCY THG Insurance Property & Casualty median
Market cap 5.44b 7.59b 2.44b

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