Mercury General Corporation (MCY) vs White Mountains Insurance Group, Ltd. (WTM)

Mercury General Corporation and White Mountains Insurance Group, Ltd. are both Insurance Property & Casualty companies. Mercury General Corporation is the larger, with a market value of $5.4B against $4.8B — 1.1× the size. White Mountains Insurance Group, Ltd. trades at the lower P/E: 4.6× against 5.9×. White Mountains Insurance Group, Ltd. grew revenue faster over the last twelve months: 55.5% against 9.95%. White Mountains Insurance Group, Ltd. has the higher net margin (29.3% vs 14.8%) and the lower return on invested capital (13.4% vs 35.8%). Both pay a dividend; Mercury General Corporation yields more (3.17% vs 0.06%). Across the 23 metrics below, White Mountains Insurance Group, Ltd. leads on 13 and Mercury General Corporation on 10.

Valuation

Metric MCY WTM Insurance Property & Casualty median
P/E 5.88 4.62 10.29
P/S 0.87 1.28 1.17
P/B 1.94 0.80 1.83
Price to free cash flow 4.28 12.62 7.48
EV/EBITDA 3.73 3.54 7.49
EV/Sales 0.75 1.49 1.13
Earnings yield 17.02% 21.66% 9.50%
Free cash flow yield 23.34% 7.93% 13.29%

Profitability

Metric MCY WTM Insurance Property & Casualty median
Gross margin 26.12% 59.35% 41.16%
Operating margin 18.78% 40.83% 15.09%
Net margin 14.77% 29.29% 11.51%
Free cash flow margin 20.26% 10.13% 17.59%
Return on equity 38.99% 19.58% 18.19%
Return on assets 9.55% 8.77% 3.74%
Return on invested capital 35.81% 13.42% 12.06%

Growth

Metric MCY WTM Insurance Property & Casualty median
Revenue growth (TTM) 9.95% 55.45% 8.69%
EPS growth (last fiscal year) 15.62% 379.05% —
Revenue growth, 5-year CAGR 9.63% 33.06% 9.23%
Net income growth, 5-year CAGR 7.63% 9.32% 10.09%

Health

Metric MCY WTM Insurance Property & Casualty median
Debt to equity 0.33 0.15 0.25
Current ratio 0.42 0.56 0.42
Net debt to EBITDA (0.97) 0.41 0.08

Dividend

Metric MCY WTM Insurance Property & Casualty median
Dividend yield 3.17% 0.06% 2.79%
Payout ratio 0.57 0.01 0.27

Size

Metric MCY WTM Insurance Property & Casualty median
Market cap 5.44b 4.84b 2.44b

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