Old Republic International (NYSE:ORI – Get Free Report) and American Coastal Insurance (NASDAQ:ACIC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Institutional & Insider Ownership
70.9% of Old Republic International shares are held by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are held by institutional investors. 1.3% of Old Republic International shares are held by company insiders. Comparatively, 49.2% of American Coastal Insurance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Old Republic International and American Coastal Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Old Republic International | 11.71% | 15.41% | 3.10% |
| American Coastal Insurance | 30.31% | 27.95% | 8.20% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Old Republic International | 0 | 2 | 1 | 0 | 2.33 |
| American Coastal Insurance | 0 | 3 | 1 | 0 | 2.25 |
Old Republic International presently has a consensus target price of $41.50, suggesting a potential upside of 7.06%. American Coastal Insurance has a consensus target price of $13.00, suggesting a potential upside of 41.15%. Given American Coastal Insurance’s higher probable upside, analysts clearly believe American Coastal Insurance is more favorable than Old Republic International.
Volatility & Risk
Old Republic International has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500.
Earnings and Valuation
This table compares Old Republic International and American Coastal Insurance”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Old Republic International | $9.14 billion | 1.02 | $935.40 million | $4.23 | 9.16 |
| American Coastal Insurance | $335.44 million | 1.30 | $106.84 million | $2.01 | 4.58 |
Old Republic International has higher revenue and earnings than American Coastal Insurance. American Coastal Insurance is trading at a lower price-to-earnings ratio than Old Republic International, indicating that it is currently the more affordable of the two stocks.
Summary
Old Republic International beats American Coastal Insurance on 7 of the 13 factors compared between the two stocks.
About Old Republic International
Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. It operates through three segments: General Insurance, Title Insurance, and Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers aviation, commercial auto, commercial multi-peril, commercial property, general liability, home and auto warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, directors and officers, and surety. This segment provides its insurance products to businesses, state and local government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. Old Republic International Corporation was founded in 1923 and is based in Chicago, Illinois.
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.
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