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 $7.6B against $5.2B — 1.5× the size. The Hanover Insurance Group, Inc. trades at the lower P/E: 10.3× against 11.7×. 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 (2.64% vs 2.08%). Across the 23 metrics below, The Hanover Insurance Group, Inc. leads on 12 and RLI Corp. on 11.

Valuation

Metric RLI THG Insurance Property & Casualty median
P/E 11.70 10.28 10.29
P/S 2.59 1.13 1.17
P/B 2.92 2.07 1.83
Price to free cash flow 9.90 6.07 7.48
EV/EBITDA 10.10 8.07 7.49
EV/Sales 2.88 1.21 1.13
Earnings yield 8.55% 9.73% 9.50%
Free cash flow yield 10.10% 16.47% 13.29%

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% 17.59%
Return on equity 25.16% 21.94% 18.19%
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% 8.69%
EPS growth (last fiscal year) 16.84% 55.21% —
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 2.08% 2.64% 2.79%
Payout ratio 0.07 0.37 0.27

Size

Metric RLI THG Insurance Property & Casualty median
Market cap 5.15b 7.59b 2.44b

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