Old Republic International Corporation (ORI) vs The Hanover Insurance Group, Inc. (THG)

Old Republic International Corporation and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. Old Republic International Corporation is the larger, with a market value of $9.2B against $7.6B — 1.2× the size. Old Republic International Corporation trades at the lower P/E: 8.1× against 10.3×. Old Republic International Corporation grew revenue faster over the last twelve months: 12.1% against 5.57%. Old Republic International Corporation has the higher net margin (11.7% vs 11.2%) and the lower return on invested capital (12.1% vs 14.2%). Both pay a dividend; Old Republic International Corporation yields more (3.63% vs 2.64%). Across the 23 metrics below, The Hanover Insurance Group, Inc. leads on 13 and Old Republic International Corporation on 10.

Valuation

Metric ORI THG Insurance Property & Casualty median
P/E 8.06 10.28 10.29
P/S 0.93 1.13 1.17
P/B 1.49 2.07 1.83
Price to free cash flow 7.07 6.07 7.48
EV/EBITDA 7.11 8.07 7.49
EV/Sales 1.12 1.21 1.13
Earnings yield 12.41% 9.73% 9.50%
Free cash flow yield 14.14% 16.47% 13.29%

Profitability

Metric ORI THG Insurance Property & Casualty median
Gross margin 15.79% 44.76% 41.16%
Operating margin 15.79% 14.98% 15.09%
Net margin 11.71% 11.17% 11.51%
Free cash flow margin 13.17% 18.52% 17.59%
Return on equity 18.52% 21.94% 18.19%
Return on assets 3.74% 4.64% 3.74%
Return on invested capital 12.06% 14.21% 12.06%

Growth

Metric ORI THG Insurance Property & Casualty median
Revenue growth (TTM) 12.12% 5.57% 8.69%
EPS growth (last fiscal year) 14.81% 55.21% —
Revenue growth, 5-year CAGR 4.98% 6.45% 9.23%
Net income growth, 5-year CAGR 10.86% 13.06% 10.09%

Health

Metric ORI THG Insurance Property & Casualty median
Debt to equity 0.38 0.23 0.25
Current ratio 0.19 0.37 0.42
Net debt to EBITDA 1.04 0.11 0.08

Dividend

Metric ORI THG Insurance Property & Casualty median
Dividend yield 3.63% 2.64% 2.79%
Payout ratio 0.36 0.37 0.27

Size

Metric ORI THG Insurance Property & Casualty median
Market cap 9.16b 7.59b 2.44b

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