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 $8.0B against $5.5B — 1.5× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 11.0× against 12.8×. RLI Corp. grew revenue faster over the last twelve months: 8.69% against 5.57%. RLI Corp. has the higher net margin (22.2% vs 11.2%) and the higher return on invested capital (17.4% vs 14.2%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (1.63% vs 0.85%). Across the 21 metrics below, RLI Corp. leads on 11 and The Hanover Insurance Group, Inc. on 10.

Valuation

Metric RLI THG Insurance Property & Casualty median
P/E 12.83 11.02 10.75
P/S 2.84 1.21 1.21
P/B 3.20 2.22 1.99
Price to free cash flow 10.86 6.51 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.79% 9.08% 9.08%
Free cash flow yield 9.21% 15.37% 12.11%

Profitability

Metric RLI THG Insurance Property & Casualty median
Gross margin 35.51% 44.76% 41.16%
Operating margin 28.50% 14.98% 15.09%
Net margin 22.22% 11.17% 11.51%
Free cash flow margin 26.19% 18.52% 17.46%
Return on equity 25.16% 21.94% 17.34%
Return on assets 7.07% 4.64% 3.74%
Return on invested capital 17.43% 14.21% 12.06%

Growth

Metric RLI THG Insurance Property & Casualty median
Revenue growth (TTM) 8.69% 5.57% 8.02%
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 0.17 0.23 0.25
Current ratio 0.26 0.37 0.42
Net debt to EBITDA 0.09 0.11 0.08

Dividend

Metric RLI THG Insurance Property & Casualty median
Dividend yield 0.85% 1.63% 1.50%
Payout ratio 0.11 0.18 0.14

Size

Metric RLI THG Insurance Property & Casualty median
Market cap 5.46b 7.95b 2.67b

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