Intact Financial (OTCMKTS:IFCZF) and American Coastal Insurance (NASDAQ:ACIC) Critical Comparison

Intact Financial (OTCMKTS:IFCZF) and American Coastal Insurance (NASDAQ:ACIC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Intact Financial and American Coastal Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intact Financial	0	2	5	0	2.71
American Coastal Insurance	0	3	1	0	2.25

American Coastal Insurance has a consensus target price of $13.00, indicating a potential upside of 39.34%. Given American Coastal Insurance’s higher possible upside, analysts clearly believe American Coastal Insurance is more favorable than Intact Financial.

Insider and Institutional Ownership

22.1% of American Coastal Insurance shares are held by institutional investors. 49.2% of American Coastal Insurance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intact Financial	11.45%	16.77%	5.06%
American Coastal Insurance	30.31%	27.95%	8.20%

Earnings and Valuation

This table compares Intact Financial 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
Intact Financial	$20.46 billion	1.48	$2.41 billion	$13.01	13.28
American Coastal Insurance	$335.44 million	1.31	$106.84 million	$2.01	4.64

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

Summary

Intact Financial beats American Coastal Insurance on 7 of the 13 factors compared between the two stocks.

About Intact Financial

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, and internationally. The company offers insurance, such as personal auto which provides coverage from accidents, third party liability, and physical damage; personal property which provides protection for homes and contents from risks, including fire, theft, vandalism, water damages, other damages, and personal liability; and commercial line and specialty line insurance which provides commercial auto, property, and liability coverages. It also provides pet and business insurance, as well as provides risk management solutions. The company serves its products to accident and health, technology, ocean and inland marine, builder's risk, and entertainment, as well as financial services and institutions; and various products to specialty property, surety, tuition reimbursement, management liability, and cyber and environmental institutions. It offers specialty insurance products including travel insurance, brokers, direct to consumer, agencies, wholesalers, affinity group, Intact Prestige, and managing general agent platform. The company was formerly known as ING Canada Inc. and changed its name to Intact Financial Corporation in 2009. Intact Financial Corporation was founded in 1809 and is based in Toronto, Canada.

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.