Accelerant (NYSE:ARX – Get Free Report) and American Coastal Insurance (NASDAQ:ACIC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Insider & Institutional Ownership
22.1% of American Coastal Insurance shares are owned by institutional investors. 66.6% of Accelerant shares are owned by insiders. Comparatively, 49.2% of American Coastal Insurance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations 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, indicating a potential downside of 9.61%. American Coastal Insurance has a consensus price target of $13.00, indicating a potential upside of 26.03%. Given American Coastal Insurance’s stronger consensus rating and higher possible upside, analysts clearly believe American Coastal Insurance is more favorable than Accelerant.
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% |
Volatility and Risk
Accelerant has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.55, indicating that its share price is 155% less volatile than the S&P 500.
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 | $1.14 billion | 3.78 | -$1.35 billion | ($6.65) | -2.99 |
| American Coastal Insurance | $335.44 million | 1.45 | $106.84 million | $1.76 | 5.86 |
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.
Summary
American Coastal Insurance beats Accelerant on 9 of the 15 factors compared between the two stocks.
About Accelerant
Accelerant is a data-driven risk exchange focused on the specialty insurance market. Its platform connects independent specialty insurance underwriters, including managing general agents, with insurance capacity providers seeking access to specialized risks. The company provides technology, data and analytics tools to support underwriting and help its members evaluate and manage insurance portfolios. Through the exchange, underwriters can access capacity, while insurers and other risk-bearing partners can connect with specialist underwriting expertise.
About American Coastal Insurance
American Coastal Insurance Corporation is a property and casualty insurance holding company focused on commercial residential property coverage. Through its insurance subsidiary, American Coastal Insurance Company, it serves customers such as condominium and homeowners associations and owners of apartment buildings. The company’s business is centered primarily in Florida, where it provides property insurance for residential communities and buildings. Its products are designed for commercial residential property risks, including exposures common in coastal areas.
Receive News & Ratings for Accelerant Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Accelerant and related companies with MarketBeat.com's FREE daily email newsletter.
