Mercury General Corporation (MCY)vsThe Travelers Companies Inc (TRV)
MCY
Mercury General Corporation
$88.41
-0.21%
FINANCIAL SERVICES · Cap: $4.90B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
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 Buy75
out of 100
Grade: B+
TRV
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+79.5%
Fair Value
$456.30
Current Price
$88.41
$367.89 discount
Margin of Safety
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 100.9% YoY
Every $100 of equity generates 25 in profit
Reasonable price relative to book value
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Areas to Watch
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
3.5% revenue growth
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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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