THG vs ERIE

For growth investors, Erie Indemnity Company (ERIE) is the stronger pick with 7.

2% revenue growth year-over-year, versus 6. 1% for The Hanover Insurance Group, Inc. (THG). The Hanover Insurance Group, Inc. (THG) offers the better valuation at 10. 2x trailing P/E (10. 4x forward), making it the more compelling value choice. Analysts rate The Hanover Insurance Group, Inc. (THG) a "Buy" — based on 22 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, The Hanover Insurance Group, Inc.

(THG) is the cheapest at 10. 2x versus Erie Indemnity Company at 20. 3x. On forward P/E, The Hanover Insurance Group, Inc. is actually cheaper at 10. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Hanover Insurance Group, Inc. wins at 0. 72x versus Erie Indemnity Company's 1. 25x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Hanover Insurance Group, Inc.

(THG) delivered a total return of +46. 7%, compared to +15. 4% for Erie Indemnity Company (ERIE). Over 10 years, the gap is even starker: ERIE returned +170. 7% versus THG's +163. 3%. 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.

13β versus The Hanover Insurance Group, Inc. 's 0. 28β — meaning THG is approximately 121% more volatile than ERIE relative to the S&P 500.

By revenue growth (latest reported year), Erie Indemnity Company (ERIE) is pulling ahead at 7.

2% versus 6. 1% for The Hanover Insurance Group, Inc. (THG). On earnings-per-share growth, the picture is similar: The Hanover Insurance Group, Inc. grew EPS 58. 2% year-over-year, compared to -7. 5% for Erie Indemnity Company. Over a 3-year CAGR, ERIE leads at 12. 7% 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 10. 0% for The Hanover Insurance Group, Inc. — 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 12. 8% for THG. At the gross margin level — before operating expenses — THG leads at 43. 5%, 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, The Hanover Insurance Group, Inc. (THG) is the more undervalued stock at a PEG of 0. 72x versus Erie Indemnity Company's 1. 25x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, The Hanover Insurance Group, Inc. (THG) trades at 10. 4x forward P/E versus 17. 1x for Erie Indemnity Company — 6. 7x 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. 9% for The Hanover Insurance Group, Inc. (THG).

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.

13), 2. 2% yield, +170. 7% 10Y return). Both have compounded well over 10 years (ERIE: +170. 7%, THG: +163. 3%), 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: THG is a small-cap deep-value stock; ERIE is a small-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.