American Coastal Insurance (NASDAQ:ACIC) vs. Arch Capital Group (NASDAQ:ACGL) Head-To-Head Survey

Arch Capital Group (NASDAQ:ACGL) and American Coastal Insurance (NASDAQ:ACIC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Profitability

This table compares Arch Capital Group and American Coastal Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arch Capital Group	20.96%	16.38%	4.62%
American Coastal Insurance	25.95%	30.06%	6.84%

Analyst Ratings

This is a summary of recent ratings and target prices for Arch Capital Group and American Coastal Insurance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arch Capital Group	1	9	8	0	2.39
American Coastal Insurance	0	2	0	0	2.00

Arch Capital Group presently has a consensus target price of $107.53, indicating a potential upside of 16.24%. Given Arch Capital Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Arch Capital Group is more favorable than American Coastal Insurance.

Valuation and Earnings

This table compares Arch Capital Group 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
Arch Capital Group	$17.44 billion	1.92	$4.31 billion	$10.69	8.65
American Coastal Insurance	$296.66 million	1.83	$75.72 million	$1.71	6.53

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

Institutional & Insider Ownership

89.1% of Arch Capital Group shares are held by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are held by institutional investors. 4.2% of Arch Capital Group shares are held by insiders. Comparatively, 49.9% of American Coastal Insurance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Arch Capital Group has a beta of 0.45, indicating that its share price is 55% 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.

Summary

Arch Capital Group beats American Coastal Insurance on 10 of the 14 factors compared between the two stocks.

About Arch Capital Group

Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products worldwide. The company's Insurance segment offers primary and excess casualty coverages; loss sensitive primary casualty insurance programs; directors' and officers' liability, errors and omissions liability, employment practices and fiduciary liability, crime, professional indemnity, and other financial related coverages; medical professional and general liability insurance coverages; and workers' compensation and umbrella liability, as well as commercial automobile and inland marine products. It also provides property, energy, marine, and aviation insurance; travel insurance; accident, disability, and medical plan insurance coverages; captive insurance programs; employer's liability; contract and commercial surety coverages; and collateral protection, debt cancellation, and service contract reimbursement products. This segment markets its products through a group of licensed independent retail and wholesale brokers. Its Reinsurance segment provides casualty reinsurance for third party liability exposures; marine and aviation; motor reinsurance, whole account multi-line treaties, cyber, trade credit, surety, accident and health, workers' compensation catastrophe, agriculture, trade credit, and political risk products; reinsurance protection for catastrophic losses, and personal lines and commercial property exposures; life reinsurance; casualty clash; and risk management solutions. This segment markets its reinsurance products through brokers. The company's Mortgage segment offers direct mortgage insurance and mortgage reinsurance. The company was founded in 1995 and is based in Pembroke, Bermuda.

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.