Accelerant (NYSE:ARX – Get Free Report) and American Coastal Insurance (NASDAQ:ACIC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Valuation & Earnings
This table compares Accelerant and American Coastal Insurance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Accelerant | $912.90 million | 4.73 | -$1.35 billion | ($6.65) | -2.99 |
| American Coastal Insurance | $310.79 million | 1.56 | $106.84 million | $1.76 | 5.84 |
American Coastal Insurance has lower revenue, but higher earnings than Accelerant. Accelerant is trading at a lower price-to-earnings ratio than American Coastal Insurance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Accelerant and American Coastal Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Accelerant | -113.08% | 42.79% | 3.68% |
| American Coastal Insurance | 28.02% | 24.36% | 7.40% |
Insider and Institutional Ownership
22.1% of American Coastal Insurance shares are held by institutional investors. 66.6% of Accelerant shares are held by company insiders. Comparatively, 49.2% of American Coastal Insurance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Accelerant and American Coastal Insurance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Accelerant | 2 | 7 | 3 | 0 | 2.08 |
| American Coastal Insurance | 0 | 2 | 1 | 1 | 2.75 |
Accelerant presently has a consensus price target of $17.98, suggesting a potential downside of 9.56%. American Coastal Insurance has a consensus price target of $13.00, suggesting a potential upside of 26.58%. Given American Coastal Insurance’s stronger consensus rating and higher probable upside, analysts clearly believe American Coastal Insurance is more favorable than Accelerant.
Volatility & Risk
Accelerant has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.55, suggesting that its share price is 155% less volatile than the S&P 500.
Summary
American Coastal Insurance beats Accelerant on 9 of the 15 factors compared between the two stocks.
About Accelerant
Accelerant Holdings, together with its subsidiaries, operates a data-driven risk exchange that connects selected specialty insurance underwriters with risk capital partners. It operates through Exchange Services, MGA Operations, and Underwriting segments. The Exchange Services segment consists of risk exchange, its operating platform that incorporates various technology, data ingestion, and agency operations that serve the needs of its members and risk capital partners. Its Risk capital partners write premiums directly through the Risk Exchange pay us a fixed-percentage, volume-based fee for sourcing, managing, and monitoring the business they write. The MGA Operations segment includes the fees earned by members, predominantly for originating and underwriting a portfolio of insurance policies, reduced by the expenses associated with providing services. The Underwriting segment is involved in underwriting insurance policies and assumption of reinsurance policies issued or accepted by consolidated insurance and reinsurance companies. The activities of insurance companies include property and casualty insurance, policy issuance, and reinsurance arrangements. It serves small-to-medium sized commercial clients primarily in the United States, Europe, Canada, Australia, and the United Kingdom. Accelerant Holdings was founded in 2018 and is based in Grand Cayman, Cayman Islands.
About American Coastal Insurance
American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023. American Coastal Insurance Corporation was founded in 1999 and is headquartered in Saint Petersburg, Florida.
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