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 $8.0B against $5.1B — 1.6× the size. White Mountains Insurance Group, Ltd. trades at the lower P/E: 4.9× against 11.0×. 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 (1.63% vs 0.05%). Across the 21 metrics below, White Mountains Insurance Group, Ltd. leads on 12 and The Hanover Insurance Group, Inc. on 9.

Valuation

Metric THG WTM Insurance Property & Casualty median
P/E 11.02 4.92 10.75
P/S 1.21 1.36 1.21
P/B 2.22 0.85 1.99
Price to free cash flow 6.51 13.43 7.76
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.08% 20.35% 9.08%
Free cash flow yield 15.37% 7.45% 12.11%

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% 17.46%
Return on equity 21.94% 19.58% 17.34%
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% 8.02%
EPS growth (last fiscal year) 55.21% 379.05% 39.61%
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 1.63% 0.05% 1.50%
Payout ratio 0.18 0.00 0.14

Size

Metric THG WTM Insurance Property & Casualty median
Market cap 7.95b 5.12b 2.67b

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