RLI Corp. (RLI) vs The Hanover Insurance Group, Inc. (THG)

RLI Corp. and The Hanover Insurance Group, Inc. are both Insurance Property & Casualty companies. The Hanover Insurance Group, Inc. is the larger, with a market value of $8.6B against $6.4B — 1.3× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.7× against 16.2×. The Hanover Insurance Group, Inc. grew revenue faster over the last twelve months: 5.04% against 4.65%. RLI Corp. has the higher net margin (20.3% vs 11.0%) and the higher return on invested capital (16.5% vs 15.9%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (1.53% vs 0.75%). Across the 21 metrics below, The Hanover Insurance Group, Inc. leads on 11 and RLI Corp. on 10.

Valuation

Metric RLI THG Insurance Property & Casualty median
P/E 16.22 11.69 12.17
P/S 3.29 1.26 1.26
P/B 3.77 2.51 1.85
Price to free cash flow 12.02 7.08 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.16% 8.55% 8.20%
Free cash flow yield 8.32% 14.13% 11.86%

Profitability

Metric RLI THG Insurance Property & Casualty median
Gross margin 33.49% 44.41% 37.39%
Operating margin 26.42% 14.71% 14.67%
Net margin 20.34% 10.97% 10.16%
Free cash flow margin 27.37% 17.85% 18.60%
Return on equity 22.13% 21.83% 16.59%
Return on assets 6.23% 4.43% 3.38%
Return on invested capital 16.47% 15.87% 9.43%

Growth

Metric RLI THG Insurance Property & Casualty median
Revenue growth (TTM) 4.65% 5.04% 5.70%
EPS growth (last fiscal year) 16.84% 55.21% 39.61%
Revenue growth, 5-year CAGR 13.86% 6.45% 9.23%
Net income growth, 5-year CAGR 20.75% 13.06% 10.09%

Health

Metric RLI THG Insurance Property & Casualty median
Debt to equity 0.18 0.25 0.25
Current ratio 0.25 0.39 0.49
Net debt to EBITDA 0.09 0.11 0.08

Dividend

Metric RLI THG Insurance Property & Casualty median
Dividend yield 0.75% 1.53% 1.56%
Payout ratio 0.12 0.18 0.15

Size

Metric RLI THG Insurance Property & Casualty median
Market cap 6.40b 8.57b 2.64b

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