Head-To-Head Review: Metromile (NASDAQ:MILE) vs. Mercury General (NYSE:MCY)

Metromile (NASDAQ:MILEGet Rating) and Mercury General (NYSE:MCYGet Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Metromile has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Mercury General has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Metromile -130.53% -57.64% -35.26%
Mercury General -1.47% 2.05% 0.64%

Valuation & Earnings

This table compares Metromile and Mercury General’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Metromile $104.90 million 1.15 -$216.46 million ($1.81) -0.51
Mercury General $3.99 billion 0.61 $247.94 million ($1.02) -43.15

Mercury General has higher revenue and earnings than Metromile. Mercury General is trading at a lower price-to-earnings ratio than Metromile, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Metromile and Mercury General, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Metromile 0 2 0 0 2.00
Mercury General 0 0 0 0 N/A

Metromile presently has a consensus price target of $4.53, suggesting a potential upside of 388.87%. Given Metromile’s higher possible upside, research analysts clearly believe Metromile is more favorable than Mercury General.

Insider and Institutional Ownership

62.5% of Metromile shares are owned by institutional investors. Comparatively, 40.0% of Mercury General shares are owned by institutional investors. 35.5% of Mercury General shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Mercury General beats Metromile on 7 of the 12 factors compared between the two stocks.

Metromile Company Profile (Get Rating)

Metromile, Inc. provides insurance policies for automobile owners in the United States. It operates through two segments, Insurance Services and Enterprise Business Solutions. The company offers pay-per-mile auto insurance policies. It also provides The Pulse, a device that plugs into the diagnostic port of its customer's car and transmits data, such as miles driven, driving habits, phone use, speeding, hard braking, accelerating, cornering, and location over wireless cellular networks. In addition, the company offers access to its technology under software as a service arrangement, as well as professional services to third-party customers. Metromile, Inc. was founded in 2011 and is headquartered in San Francisco, California.

Mercury General Company Profile (Get Rating)

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, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals 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.

Receive News & Ratings for Metromile Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Metromile and related companies with MarketBeat.com's FREE daily email newsletter.