NI (NASDAQ:NODK) vs. Accelerant (NYSE:ARX) Financial Contrast

NI (NASDAQ:NODK) and Accelerant (NYSE:ARX) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares NI and Accelerant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NI	2.93%	3.18%	1.50%
Accelerant	-113.08%	42.79%	3.68%

Institutional & Insider Ownership

21.9% of NI shares are held by institutional investors. 1.0% of NI shares are held by company insiders. Comparatively, 66.6% of Accelerant shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NI and Accelerant, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NI	0	1	0	0	2.00
Accelerant	2	6	4	0	2.17

Accelerant has a consensus price target of $18.95, suggesting a potential downside of 4.07%. Given Accelerant’s stronger consensus rating and higher probable upside, analysts clearly believe Accelerant is more favorable than NI.

Valuation & Earnings

This table compares NI and Accelerant”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NI	$285.05 million	1.07	-$10.41 million	$0.38	39.46
Accelerant	$1.14 billion	3.75	-$1.35 billion	($6.65)	-2.97

NI has higher earnings, but lower revenue than Accelerant. Accelerant is trading at a lower price-to-earnings ratio than NI, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NI has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Accelerant has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Summary

Accelerant beats NI on 8 of the 14 factors compared between the two stocks.

About NI

NI Holdings, Inc. underwrites property and casualty insurance products in the United States. Its products include private passenger auto, non-standard automobile, homeowners, farm owners, crop hail and multi-peril crop, and liability insurance policies. The company was founded in 1946 and is headquartered in Fargo, North Dakota. NI Holdings, Inc. operates as a subsidiary of Nodak Mutual Group, Inc.

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.