Mercury General (NYSE:MCY) versus NI (NYSE:NODK) Head-To-Head Analysis

Mercury General (NYSE:MCY) and NI (NASDAQ:NODK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mercury General and NI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercury General 0 0 1 0 3.00
NI 0 0 0 0 N/A



Mercury General presently has a consensus price target of $69.00, suggesting a potential upside of 25.68%. Given Mercury General’s higher probable upside, research analysts plainly believe Mercury General is more favorable than NI.

Dividends

Mercury General pays an annual dividend of $2.51 per share and has a dividend yield of 4.6%. NI does not pay a dividend. Mercury General pays out 139.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mercury General has raised its dividend for 33 consecutive years.

Institutional & Insider Ownership

43.3% of Mercury General shares are held by institutional investors. Comparatively, 21.3% of NI shares are held by institutional investors. 34.2% of Mercury General shares are held by insiders. Comparatively, 0.5% of NI shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Mercury General has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, NI has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.

Profitability

This table compares Mercury General and NI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercury General 5.28% 7.97% 2.47%
NI 16.37% 12.45% 7.20%

Earnings and Valuation

This table compares Mercury General and NI’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mercury General $3.38 billion 0.90 -$5.72 million $1.80 30.50
NI $212.37 million 1.75 $31.08 million N/A N/A

NI has lower revenue, but higher earnings than Mercury General.

Summary

Mercury General beats NI on 9 of the 15 factors compared between the two stocks.

About Mercury General

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, fire, and umbrella insurance. Its automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners' insurance products cover dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents, 100% owned insurance agents, and direct channels in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in North Dakota, South Dakota, Nebraska, Minnesota, Nevada, Arizona, and Illinois. Its products include multi-peril crop, crop hail, private passenger automobile, farm owners, homeowners, and commercial property and liability insurance policies, as well as non-standard automobile insurance products. The company distributes its insurance products through independent producers and independent agents. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. is a subsidiary of Nodak Mutual Group, Inc.

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