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 $5.6B against $5.1B — 1.1× the size. White Mountains Insurance Group, Ltd. trades at the lower P/E: 4.9× against 6.1×. 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 (1.24% vs 0.05%). Across the 21 metrics below, White Mountains Insurance Group, Ltd. leads on 12 and Mercury General Corporation on 9.

Valuation

Metric MCY WTM Insurance Property & Casualty median
P/E 6.08 4.92 10.75
P/S 0.90 1.36 1.21
P/B 2.01 0.85 1.99
Price to free cash flow 4.43 13.43 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 16.46% 20.35% 9.08%
Free cash flow yield 22.57% 7.45% 12.11%

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% 17.46%
Return on equity 38.99% 19.58% 17.34%
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% 8.02%
EPS growth (last fiscal year) 15.62% 379.05% 39.61%
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 1.24% 0.05% 1.50%
Payout ratio 0.08 0.00 0.14

Size

Metric MCY WTM Insurance Property & Casualty median
Market cap 5.64b 5.12b 2.67b

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