Comparing American Coastal Insurance (NASDAQ:ACIC) & Tokio Marine (OTCMKTS:TKOMY)

American Coastal Insurance (NASDAQ:ACIC) and Tokio Marine (OTCMKTS:TKOMY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares American Coastal Insurance and Tokio Marine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Coastal Insurance	25.95%	30.06%	6.84%
Tokio Marine	9.67%	15.90%	2.58%

Risk & Volatility

American Coastal Insurance has a beta of -0.49, meaning that its stock price is 149% less volatile than the S&P 500. Comparatively, Tokio Marine has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for American Coastal Insurance and Tokio Marine, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Coastal Insurance	0	0	1	0	3.00
Tokio Marine	0	2	0	0	2.00

Institutional and Insider Ownership

22.1% of American Coastal Insurance shares are owned by institutional investors. 49.9% of American Coastal Insurance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares American Coastal Insurance and Tokio Marine”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	$296.66 million	1.94	$75.72 million	$1.71	6.92
Tokio Marine	$55.42 billion	1.23	$6.96 billion	$2.73	12.92

Tokio Marine has higher revenue and earnings than American Coastal Insurance. American Coastal Insurance is trading at a lower price-to-earnings ratio than Tokio Marine, indicating that it is currently the more affordable of the two stocks.

Summary

American Coastal Insurance beats Tokio Marine on 8 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 Tokio Marine

Tokio Marine Holdings, Inc., together with its subsidiaries, engages in non-life and life insurance, international insurance, and financial and general businesses worldwide. The company provides business, fire, Internet and mobile, rental housing, and natural catastrophe risk insurance services, as well as insurance for retail and corporate fields. It also provides property investment, insurance agency and risk consulting, human resource, in-home care and nursing care information, healthcare/medical, call center, and real estate-related services. Tokio Marine Holdings, Inc. serves individuals, small to medium sized non-profit organizations, schools, or churches. The company was formerly known as Millea Holdings, Inc. and changed its name to Tokio Marine Holdings, Inc. in 2008. Tokio Marine Holdings, Inc. was founded in 1879 and is headquartered in Tokyo, Japan.