RLI Corp. (RLI) vs White Mountains Insurance Group, Ltd. (WTM)

RLI Corp. and White Mountains Insurance Group, Ltd. are both Insurance Property & Casualty companies. RLI Corp. and White Mountains Insurance Group, Ltd. are of similar size ($5.2B and $4.8B). White Mountains Insurance Group, Ltd. trades at the lower P/E: 4.6× against 11.7×. White Mountains Insurance Group, Ltd. grew revenue faster over the last twelve months: 55.5% against 8.69%. White Mountains Insurance Group, Ltd. has the higher net margin (29.3% vs 22.2%) and the lower return on invested capital (13.4% vs 17.4%). Both pay a dividend; RLI Corp. yields more (2.08% vs 0.06%). Across the 23 metrics below, White Mountains Insurance Group, Ltd. leads on 15 and RLI Corp. on 8.

Valuation

Metric RLI WTM Insurance Property & Casualty median
P/E 11.70 4.62 10.29
P/S 2.59 1.28 1.17
P/B 2.92 0.80 1.83
Price to free cash flow 9.90 12.62 7.48
EV/EBITDA 10.10 3.54 7.49
EV/Sales 2.88 1.49 1.13
Earnings yield 8.55% 21.66% 9.50%
Free cash flow yield 10.10% 7.93% 13.29%

Profitability

Metric RLI WTM Insurance Property & Casualty median
Gross margin 35.51% 59.35% 41.16%
Operating margin 28.50% 40.83% 15.09%
Net margin 22.22% 29.29% 11.51%
Free cash flow margin 26.19% 10.13% 17.59%
Return on equity 25.16% 19.58% 18.19%
Return on assets 7.07% 8.77% 3.74%
Return on invested capital 17.43% 13.42% 12.06%

Growth

Metric RLI WTM Insurance Property & Casualty median
Revenue growth (TTM) 8.69% 55.45% 8.69%
EPS growth (last fiscal year) 16.84% 379.05% —
Revenue growth, 5-year CAGR 13.86% 33.06% 9.23%
Net income growth, 5-year CAGR 20.75% 9.32% 10.09%

Health

Metric RLI WTM Insurance Property & Casualty median
Debt to equity 0.17 0.15 0.25
Current ratio 0.26 0.56 0.42
Net debt to EBITDA 0.09 0.41 0.08

Dividend

Metric RLI WTM Insurance Property & Casualty median
Dividend yield 2.08% 0.06% 2.79%
Payout ratio 0.07 0.01 0.27

Size

Metric RLI WTM Insurance Property & Casualty median
Market cap 5.15b 4.84b 2.44b

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