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 $8.5B against $5.7B — 1.5× the size. Mercury General Corporation trades at the lower P/E: 8.9× against 11.7×. Mercury General Corporation grew revenue faster over the last twelve months: 5.42% against 5.04%. The Hanover Insurance Group, Inc. has the higher net margin (11.0% vs 10.5%) and the lower return on invested capital (15.9% vs 24.8%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (1.53% vs 1.23%). Across the 21 metrics below, Mercury General Corporation leads on 15 and The Hanover Insurance Group, Inc. on 6.

Valuation

Metric MCY THG Insurance Property & Casualty median
P/E 8.87 11.67 11.87
P/S 0.93 1.26 1.26
P/B 2.03 2.50 1.99
Price to free cash flow 4.85 7.06 8.12
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 11.28% 8.57% 8.04%
Free cash flow yield 20.63% 14.16% 11.85%

Profitability

Metric MCY THG Insurance Property & Casualty median
Gross margin 21.11% 44.41% 41.66%
Operating margin 13.37% 14.71% 14.71%
Net margin 10.47% 10.97% 10.84%
Free cash flow margin 19.85% 17.85% 17.46%
Return on equity 25.52% 21.83% 16.87%
Return on assets 6.52% 4.43% 3.57%
Return on invested capital 24.80% 15.87% 12.03%

Growth

Metric MCY THG Insurance Property & Casualty median
Revenue growth (TTM) 5.42% 5.04% 5.92%
EPS growth (last fiscal year) 15.62% 55.21% 39.61%
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 0.20 0.25 0.25
Current ratio 0.42 0.39 0.42
Net debt to EBITDA (0.97) 0.11 0.08

Dividend

Metric MCY THG Insurance Property & Casualty median
Dividend yield 1.23% 1.53% 1.44%
Payout ratio 0.11 0.18 0.14

Size

Metric MCY THG Insurance Property & Casualty median
Market cap 5.69b 8.50b 2.61b

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