American Coastal Insurance (NASDAQ:ACIC – Get Free Report) and RLI (NYSE:RLI – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider & Institutional Ownership
22.1% of American Coastal Insurance shares are held by institutional investors. Comparatively, 77.9% of RLI shares are held by institutional investors. 49.2% of American Coastal Insurance shares are held by insiders. Comparatively, 2.4% of RLI shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for American Coastal Insurance and RLI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Coastal Insurance | 0 | 3 | 1 | 0 | 2.25 |
| RLI | 2 | 3 | 1 | 0 | 1.83 |
Earnings & Valuation
This table compares American Coastal Insurance and RLI”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Coastal Insurance | $335.44 million | 1.50 | $106.84 million | $2.01 | 5.29 |
| RLI | $1.97 billion | 2.66 | $403.34 million | $4.76 | 12.00 |
RLI has higher revenue and earnings than American Coastal Insurance. American Coastal Insurance is trading at a lower price-to-earnings ratio than RLI, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Coastal Insurance and RLI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Coastal Insurance | 30.31% | 27.95% | 8.20% |
| RLI | 22.22% | 17.61% | 5.03% |
Volatility and Risk
American Coastal Insurance has a beta of -0.51, suggesting that its stock price is 151% less volatile than the S&P 500. Comparatively, RLI has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Summary
RLI beats American Coastal Insurance on 7 of the 13 factors compared between the two stocks.
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.
About RLI
RLI Corp., an insurance holding company, underwrites property and casualty insurance. Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. It also offers coverages for security guards and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages for errors and omission coverage for small to medium-sized design, technical, computer, and miscellaneous professionals. This segment provides commercial automobile liability and physical damage insurance to local, intermediate and long haul truckers, public transportation entities, and other types of specialty commercial automobile risks; incidental and related insurance coverages; inland marine coverages; management liability coverages, such as directors and officers liability insurance, fiduciary liability and coverages, employment practice liability, and for various classes of risks, including public and private businesses; and home business insurance products. The company's Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners' and dwelling fire, and other property insurance products. Its Surety segment offers commercial surety bonds for medium to large-sized businesses; small bonds for businesses and individuals; and bonds for small to medium-sized contractors. The company also engages in various reinsurance coverages. It markets its products through branch offices, wholesale and retail brokers, carrier partners, and underwriting and independent agents. RLI Corp. was incorporated in 1965 and is headquartered in Peoria, Illinois.
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