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 $8.6B against $5.5B — 1.6× the size. White Mountains Insurance Group, Ltd. trades at the lower P/E: 6.0× against 11.7×. White Mountains Insurance Group, Ltd. grew revenue faster over the last twelve months: 44.9% against 5.04%. White Mountains Insurance Group, Ltd. has the higher net margin (26.9% vs 11.0%) and the lower return on invested capital (0.00% vs 15.9%). Both pay a dividend; The Hanover Insurance Group, Inc. yields more (1.53% vs 0.04%). Across the 21 metrics below, The Hanover Insurance Group, Inc. leads on 11 and White Mountains Insurance Group, Ltd. on 10.

Valuation

Metric THG WTM Insurance Property & Casualty median
P/E 11.69 6.04 12.17
P/S 1.26 1.49 1.26
P/B 2.51 0.88 1.85
Price to free cash flow 7.08 13.97 8.04
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 8.55% 16.55% 8.20%
Free cash flow yield 14.13% 7.16% 11.86%

Profitability

Metric THG WTM Insurance Property & Casualty median
Gross margin 44.41% 0.00% 37.39%
Operating margin 14.71% 0.00% 14.67%
Net margin 10.97% 26.86% 10.16%
Free cash flow margin 17.85% 10.69% 18.60%
Return on equity 21.83% 16.59% 16.59%
Return on assets 4.43% 7.54% 3.38%
Return on invested capital 15.87% 0.00% 9.43%

Growth

Metric THG WTM Insurance Property & Casualty median
Revenue growth (TTM) 5.04% 44.92% 5.70%
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 0.25 0.15 0.25
Current ratio 0.39 0.56 0.49
Net debt to EBITDA 0.11 0.41 0.08

Dividend

Metric THG WTM Insurance Property & Casualty median
Dividend yield 1.53% 0.04% 1.56%
Payout ratio 0.18 0.00 0.15

Size

Metric THG WTM Insurance Property & Casualty median
Market cap 8.57b 5.48b 2.64b

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