WallStSmart

Mercury General Corporation (MCY)vsThe Travelers Companies Inc (TRV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Travelers Companies Inc generates 715% more annual revenue ($48.83B vs $5.99B). TRV leads profitability with a 12.9% profit margin vs 9.0%. MCY appears more attractively valued with a PEG of 1.12. MCY earns a higher WallStSmart Score of 75/100 (B+).

MCY

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 7.0Value: 10.0Quality: 6.3
Piotroski: 3/9Altman Z: 1.69

TRV

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCYUndervalued (+79.5%)

Margin of Safety

+79.5%

Fair Value

$456.30

Current Price

$88.41

$367.89 discount

UndervaluedFair: $456.30Overvalued
TRVUndervalued (+75.4%)

Margin of Safety

+75.4%

Fair Value

$1213.50

Current Price

$290.59

$922.91 discount

UndervaluedFair: $1213.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCY4 strengths · Avg: 9.3/10
P/E RatioValuation
9.1x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
100.9%10/10

Earnings expanding 100.9% YoY

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

TRV6 strengths · Avg: 8.8/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Market CapQuality
$65.36B9/10

Large-cap with strong market position

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Areas to Watch

MCY2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.694/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TRV4 concerns · Avg: 3.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MCY

The strongest argument for MCY centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 14.1% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bull Case : TRV

The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.

Bear Case : MCY

The primary concerns for MCY are Altman Z-Score, Piotroski F-Score.

Bear Case : TRV

The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

MCY carries more volatility with a beta of 0.94 — expect wider price swings.

MCY is growing revenue faster at 14.1% — sustainability is the question.

Monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MCY scores higher overall (75/100 vs 71/100) and 14.1% revenue growth. TRV offers better value entry with a 75.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Mercury General Corporation

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

Mercury General Corporation engages in underwriting personal auto insurance in the United States. The company is headquartered in Los Angeles, California.

The Travelers Companies Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.

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