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MCY vs OTF

MCY
Mercury General Corporation
BULLISH
Price
$95.65
Market Cap
$5.3B
Sector
Financial Services
AI Confidence
85%
OTF
Blue Owl Technology Finance Corp.
NEUTRAL
Price
$11.38
Market Cap
$5.3B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
MCY
9.79
OTF
6.47
Forward P/E
MCY
11.96
OTF
8.2
P/B Ratio
MCY
2.19
OTF
0.66
P/S Ratio
MCY
0.88
OTF
4.62
EV/EBITDA
MCY
5.54
OTF
--

Profitability

Gross Margin
MCY
18.63%
OTF
100.0%
Operating Margin
MCY
16.66%
OTF
69.38%
Profit Margin
MCY
9.03%
OTF
62.89%
ROE
MCY
24.8%
OTF
12.35%
ROA
MCY
4.82%
OTF
4.9%

Growth

Revenue Growth
MCY
14.1%
OTF
92.3%
Earnings Growth
MCY
100.9%
OTF
-7.6%

Financial Health

Debt/Equity
MCY
0.24
OTF
0.78
Current Ratio
MCY
0.56
OTF
0.19
Quick Ratio
MCY
0.52
OTF
0.17

Dividends

Dividend Yield
MCY
1.33%
OTF
12.3%
Payout Ratio
MCY
13.0%
OTF
59.66%

AI Verdict

MCY BULLISH

MCY exhibits a strong recovery profile, transitioning from significant losses in 2022-2023 to explosive earnings growth (100.9% YoY). While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company's valuation is highly attractive, trading almost exactly at its Graham Number ($97.95) and significantly below its growth-based intrinsic value ($288.21). Strong ROE (24.8%) and a low P/E ratio (9.79) suggest the market has not yet fully priced in the recent earnings acceleration.

Strengths
Explosive earnings growth (100.9% YoY) and consistent earnings beats
Attractive valuation with a P/E of 9.79 and P/S of 0.88
Strong Return on Equity (ROE) of 24.80%
Risks
Low current ratio (0.56) indicating potential short-term liquidity pressure
Low dividend strength (25/100) and yield (1.33%)
High volatility in historical quarterly earnings (swinging from losses to massive gains)
OTF NEUTRAL

OTF presents a classic 'value trap' profile, characterized by a very weak Piotroski F-Score of 2/9 and severe liquidity concerns (Current Ratio 0.19). While the stock is significantly undervalued relative to its Graham Number ($26.2) and trades at a low P/E of 6.47, the technical trend is completely bearish (0/100). Explosive revenue growth (92.3% YoY) is currently decoupled from bottom-line earnings growth (-7.6% YoY), suggesting operational inefficiency or rising costs of capital. The high dividend yield is attractive but risky given the poor financial health scores.

Strengths
Deep value valuation with P/B of 0.66 and P/E of 6.47
Exceptional revenue growth (92.3% YoY)
High dividend yield of 12.3% with a sustainable payout ratio (59.66%)
Risks
Critical financial health weakness indicated by Piotroski F-Score of 2/9
Severe short-term liquidity risk (Current Ratio 0.19)
Strongly bearish technical trend (0/100)

Compare Another Pair

MCY vs OTF: Head-to-Head Comparison

This page compares Mercury General Corporation (MCY) and Blue Owl Technology Finance Corp. (OTF) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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