American Coastal Insurance (NASDAQ:ACIC) vs. SelectQuote (NYSE:SLQT) Head to Head Comparison

SelectQuote (NYSE:SLQT) and American Coastal Insurance (NASDAQ:ACIC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SelectQuote	1	2	0	1	2.25
American Coastal Insurance	0	2	1	1	2.75

SelectQuote currently has a consensus target price of $3.00, indicating a potential upside of 496.42%. American Coastal Insurance has a consensus target price of $13.00, indicating a potential upside of 28.36%. Given SelectQuote’s higher probable upside, analysts plainly believe SelectQuote is more favorable than American Coastal Insurance.

Insider & Institutional Ownership

34.6% of SelectQuote shares are owned by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are owned by institutional investors. 11.6% of SelectQuote shares are owned by insiders. Comparatively, 49.2% 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 stock is poised for long-term growth.

Valuation & Earnings

This table compares SelectQuote and American Coastal Insurance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SelectQuote	$1.62 billion	0.06	$62.19 million	($0.03)	-16.77
American Coastal Insurance	$335.44 million	1.43	$106.84 million	$1.76	5.75

American Coastal Insurance has lower revenue, but higher earnings than SelectQuote. SelectQuote 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.

Risk and Volatility

SelectQuote has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.55, indicating that its stock price is 155% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SelectQuote	4.61%	22.48%	6.06%
American Coastal Insurance	28.02%	24.36%	7.40%

Summary

American Coastal Insurance beats SelectQuote on 10 of the 14 factors compared between the two stocks.

About SelectQuote

SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.

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.