Critical Analysis: Accelerant (ARX) versus Its Rivals

Accelerant (NYSE:ARX) is one of 316 public companies in the “Insurance” industry, but how does it compare to its peers? We will compare Accelerant to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

55.8% of shares of all “Insurance” companies are owned by institutional investors. 66.6% of Accelerant shares are owned by insiders. Comparatively, 13.8% of shares of all “Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Accelerant and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Accelerant	$912.90 million	-$1.35 billion	-2.80
Accelerant Competitors	$15.42 billion	$1.69 billion	33.64

Accelerant’s peers have higher revenue and earnings than Accelerant. Accelerant is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Accelerant and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Accelerant	-135.47%	49.99%	3.33%
Accelerant Competitors	9.71%	10.83%	3.98%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Accelerant and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accelerant	1	5	7	0	2.46
Accelerant Competitors	3199	15261	16070	671	2.40

Accelerant currently has a consensus target price of $18.73, indicating a potential downside of 4.00%. As a group, “Insurance” companies have a potential upside of 7.24%. Given Accelerant’s peers higher possible upside, analysts clearly believe Accelerant has less favorable growth aspects than its peers.

Summary

Accelerant peers beat Accelerant on 8 of the 12 factors compared.

About Accelerant

Aeroflex Holding Corp. (Aeroflex Holding) is a provider of radio frequency (RF) and microwave integrated circuits, components and systems used in the design, development and maintenance of wireless communication systems. The Company’s solutions include microelectronic components and test and measurement equipment used by companies in the space, avionics and defense; commercial wireless communications, and medical and other markets. Its products include a range of RF, microwave and millimeter wave microelectronic components, integrated circuits (ICs), and analog and mixed-signal devices. It operates in two segments: Aeroflex Microelectronics Solutions (AMS) and Aeroflex Test Solutions (ATS). In February 2014, Aeroflex Holding Corp announced the acquisition of Shenick Network Systems. In September 2014, Cobham PLC completes Aeroflex acquisition.