WallStSmart

RLI Corp (RLI)vsThe Travelers Companies Inc (TRV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Travelers Companies Inc generates 2494% more annual revenue ($48.83B vs $1.88B). RLI leads profitability with a 21.4% profit margin vs 12.9%. RLI appears more attractively valued with a PEG of 1.73. RLI earns a higher WallStSmart Score of 75/100 (B).

RLI

Strong Buy

75

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 10.0Quality: 6.3
Piotroski: 5/9

TRV

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RLIUndervalued (+69.3%)

Margin of Safety

+69.3%

Fair Value

$205.45

Current Price

$56.97

$148.48 discount

UndervaluedFair: $205.45Overvalued
TRVUndervalued (+75.4%)

Margin of Safety

+75.4%

Fair Value

$1213.50

Current Price

$290.59

$922.91 discount

UndervaluedFair: $1213.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RLI6 strengths · Avg: 9.0/10
EPS GrowthGrowth
124.4%10/10

Earnings expanding 124.4% YoY

Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Return on EquityProfitability
24.4%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
21.4%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
13.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

TRV6 strengths · Avg: 8.8/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

Market CapQuality
$65.36B9/10

Large-cap with strong market position

Return on EquityProfitability
20.7%9/10

Every $100 of equity generates 21 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Areas to Watch

RLI1 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

TRV4 concerns · Avg: 3.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

Free Cash FlowQuality
$02/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : RLI

The strongest argument for RLI centers on EPS Growth, Debt/Equity, Return on Equity. Profitability is solid with margins at 21.4% and operating margin at 27.0%.

Bull Case : TRV

The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.

Bear Case : RLI

The primary concerns for RLI are PEG Ratio.

Bear Case : TRV

The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

RLI profiles as a mature stock while TRV is a value play — different risk/reward profiles.

TRV carries more volatility with a beta of 0.50 — expect wider price swings.

RLI is growing revenue faster at 6.1% — sustainability is the question.

Monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RLI scores higher overall (75/100 vs 71/100), backed by strong 21.4% margins. TRV offers better value entry with a 75.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

RLI Corp

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

RLI Corp. The company is headquartered in Peoria, Illinois.

Visit Website →

The Travelers Companies Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.

Visit Website →

Want to dig deeper into these stocks?