Palomar Holdings, Inc. (PLMR) vs RLI Corp. (RLI)

Palomar Holdings, Inc. and RLI Corp. are both Insurance Property & Casualty companies. RLI Corp. is the larger, with a market value of $5.2B against $3.3B — 1.6× the size. RLI Corp. trades at the lower P/E: 11.7× against 16.2×. Palomar Holdings, Inc. grew revenue faster over the last twelve months: 60.0% against 8.69%. RLI Corp. has the higher net margin (22.2% vs 18.6%) and the higher return on invested capital (17.4% vs 13.5%). Across the 22 metrics below, RLI Corp. leads on 13 and Palomar Holdings, Inc. on 9.

Valuation

Metric PLMR RLI Insurance Property & Casualty median
P/E 16.17 11.70 10.29
P/S 2.99 2.59 1.17
P/B 3.33 2.92 1.83
Price to free cash flow 8.00 9.90 7.48
EV/EBITDA 13.05 10.10 7.49
EV/Sales 3.25 2.88 1.13
Earnings yield 6.19% 8.55% 9.50%
Free cash flow yield 12.50% 10.10% 13.29%

Profitability

Metric PLMR RLI Insurance Property & Casualty median
Gross margin 24.87% 35.51% 41.16%
Operating margin 24.87% 28.50% 15.09%
Net margin 18.61% 22.22% 11.51%
Free cash flow margin 37.41% 26.19% 17.59%
Return on equity 22.23% 25.16% 18.19%
Return on assets 5.98% 7.07% 3.74%
Return on invested capital 13.54% 17.43% 12.06%

Growth

Metric PLMR RLI Insurance Property & Casualty median
Revenue growth (TTM) 59.98% 8.69% 8.69%
EPS growth (last fiscal year) 60.04% 16.84% —
Revenue growth, 5-year CAGR 39.06% 13.86% 9.23%
Net income growth, 5-year CAGR 99.37% 20.75% 10.09%

Health

Metric PLMR RLI Insurance Property & Casualty median
Debt to equity 0.30 0.17 0.25
Current ratio 0.50 0.26 0.42
Net debt to EBITDA (0.41) 0.09 0.08

Dividend

Metric PLMR RLI Insurance Property & Casualty median
Dividend yield — 2.08% 2.79%
Payout ratio 0.00 0.07 0.27

Size

Metric PLMR RLI Insurance Property & Casualty median
Market cap 3.31b 5.15b 2.44b

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