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 $5.5B against $3.6B — 1.5× the size. RLI Corp. trades at the lower P/E: 12.8× against 18.2×. 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%). Both pay a dividend; RLI Corp. yields more (0.85% vs 0.32%). Across the 21 metrics below, RLI Corp. leads on 12 and Palomar Holdings, Inc. on 9.

Valuation

Metric PLMR RLI Insurance Property & Casualty median
P/E 18.20 12.83 10.75
P/S 3.37 2.84 1.21
P/B 3.75 3.20 1.99
Price to free cash flow 9.01 10.86 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.49% 7.79% 9.08%
Free cash flow yield 11.10% 9.21% 12.11%

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% 17.46%
Return on equity 22.23% 25.16% 17.34%
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% 8.02%
EPS growth (last fiscal year) 60.04% 16.84% 39.61%
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 0.32% 0.85% 1.50%
Payout ratio 0.06 0.11 0.14

Size

Metric PLMR RLI Insurance Property & Casualty median
Market cap 3.62b 5.46b 2.67b

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