American Coastal Insurance (NASDAQ:ACIC – Get Free Report) and Accelerant (NYSE:ARX – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Valuation & Earnings
This table compares American Coastal Insurance and Accelerant”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Coastal Insurance | $310.79 million | 1.56 | $106.84 million | $1.76 | 5.84 |
| Accelerant | $912.90 million | 4.73 | -$1.35 billion | ($6.65) | -2.99 |
American Coastal Insurance has higher earnings, but lower revenue 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 American Coastal Insurance and Accelerant’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Coastal Insurance | 28.02% | 24.36% | 7.40% |
| Accelerant | -113.08% | 42.79% | 3.68% |
Risk & Volatility
American Coastal Insurance has a beta of -0.55, meaning that its share price is 155% less volatile than the S&P 500. Comparatively, Accelerant has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.
Institutional and Insider Ownership
22.1% of American Coastal Insurance shares are owned by institutional investors. 49.2% of American Coastal Insurance shares are owned by company insiders. Comparatively, 66.6% of Accelerant shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for American Coastal Insurance and Accelerant, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Coastal Insurance | 0 | 2 | 1 | 1 | 2.75 |
| Accelerant | 2 | 7 | 3 | 0 | 2.08 |
American Coastal Insurance presently has a consensus price target of $13.00, suggesting a potential upside of 26.58%. Accelerant has a consensus price target of $17.98, suggesting a potential downside of 9.56%. Given American Coastal Insurance’s stronger consensus rating and higher possible upside, equities analysts plainly believe American Coastal Insurance is more favorable than Accelerant.
Summary
American Coastal Insurance beats Accelerant on 9 of the 15 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 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.
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