MCY vs ERIE

For growth investors, Mercury General Corporation (MCY) is the stronger pick with 9.

4% revenue growth year-over-year, versus 7. 2% for Erie Indemnity Company (ERIE). Mercury General Corporation (MCY) offers the better valuation at 10. 0x trailing P/E (10. 9x forward), making it the more compelling value choice. Analysts rate Mercury General Corporation (MCY) a "Hold" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Mercury General Corporation (MCY) is the cheapest at 10.

0x versus Erie Indemnity Company at 20. 4x. On forward P/E, Mercury General Corporation is actually cheaper at 10. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Erie Indemnity Company wins at 1. 26x versus Mercury General Corporation's 1. 43x — a reasonable growth-adjusted valuation.

Over the past 5 years, Mercury General Corporation (MCY) delivered a total return of +58.

8%, compared to +14. 8% for Erie Indemnity Company (ERIE). Over 10 years, the gap is even starker: ERIE returned +171. 6% versus MCY's +127. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Erie Indemnity Company (ERIE) is the lower-risk stock at 0.

16β versus Mercury General Corporation's 0. 54β — meaning MCY is approximately 232% more volatile than ERIE relative to the S&P 500.

By revenue growth (latest reported year), Mercury General Corporation (MCY) is pulling ahead at 9.

4% versus 7. 2% for Erie Indemnity Company (ERIE). On earnings-per-share growth, the picture is similar: Mercury General Corporation grew EPS 15. 6% year-over-year, compared to -7. 5% for Erie Indemnity Company. Over a 3-year CAGR, MCY leads at 18. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Erie Indemnity Company (ERIE) is the more profitable company, earning 13.

8% net margin versus 9. 0% for Mercury General Corporation — meaning it keeps 13. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ERIE leads at 17. 7% versus 11. 1% for MCY. At the gross margin level — before operating expenses — MCY leads at 33. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Erie Indemnity Company (ERIE) is the more undervalued stock at a PEG of 1. 26x versus Mercury General Corporation's 1. 43x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Mercury General Corporation (MCY) trades at 10. 9x forward P/E versus 17. 1x for Erie Indemnity Company — 6. 3x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Erie Indemnity Company (ERIE) offers the highest yield at 2. 2%, versus 1. 3% for Mercury General Corporation (MCY).

For long-horizon retirement investors, Erie Indemnity Company (ERIE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

16), 2. 2% yield, +171. 6% 10Y return). Both have compounded well over 10 years (ERIE: +171. 6%, MCY: +127. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: MCY is a small-cap deep-value stock; ERIE is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.