The Hanover Insurance Group, Inc. (THG) vs White Mountains Insurance Group, Ltd. (WTM)

The Hanover Insurance Group, Inc. and White Mountains Insurance Group, Ltd. are both Insurance Property & Casualty companies. The Hanover Insurance Group, Inc. is the larger, with a market value of $7.6B against $4.8B — 1.6× the size. White Mountains Insurance Group, Ltd. trades at the lower P/E: 4.6× against 10.3×. White Mountains Insurance Group, Ltd. grew revenue faster over the last twelve months: 55.5% against 5.57%. White Mountains Insurance Group, Ltd. has the higher net margin (29.3% vs 11.2%) and the lower return on invested capital (13.4% vs 14.2%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (2.64% vs 0.06%). Across the 23 metrics below, White Mountains Insurance Group, Ltd. leads on 13 and The Hanover Insurance Group, Inc. on 10.

Valuation

Metric THG WTM Insurance Property & Casualty median
P/E 10.28 4.62 10.29
P/S 1.13 1.28 1.17
P/B 2.07 0.80 1.83
Price to free cash flow 6.07 12.62 7.48
EV/EBITDA 8.07 3.54 7.49
EV/Sales 1.21 1.49 1.13
Earnings yield 9.73% 21.66% 9.50%
Free cash flow yield 16.47% 7.93% 13.29%

Profitability

Metric THG WTM Insurance Property & Casualty median
Gross margin 44.76% 59.35% 41.16%
Operating margin 14.98% 40.83% 15.09%
Net margin 11.17% 29.29% 11.51%
Free cash flow margin 18.52% 10.13% 17.59%
Return on equity 21.94% 19.58% 18.19%
Return on assets 4.64% 8.77% 3.74%
Return on invested capital 14.21% 13.42% 12.06%

Growth

Metric THG WTM Insurance Property & Casualty median
Revenue growth (TTM) 5.57% 55.45% 8.69%
EPS growth (last fiscal year) 55.21% 379.05% —
Revenue growth, 5-year CAGR 6.45% 33.06% 9.23%
Net income growth, 5-year CAGR 13.06% 9.32% 10.09%

Health

Metric THG WTM Insurance Property & Casualty median
Debt to equity 0.23 0.15 0.25
Current ratio 0.37 0.56 0.42
Net debt to EBITDA 0.11 0.41 0.08

Dividend

Metric THG WTM Insurance Property & Casualty median
Dividend yield 2.64% 0.06% 2.79%
Payout ratio 0.37 0.01 0.27

Size

Metric THG WTM Insurance Property & Casualty median
Market cap 7.59b 4.84b 2.44b

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