American Coastal Insurance (NASDAQ:ACIC) & Everest Group (NYSE:EG) Critical Contrast

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

Insider and Institutional Ownership

92.6% of Everest Group shares are owned by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are owned by institutional investors. 0.7% of Everest Group shares are owned by company insiders. Comparatively, 49.2% of American Coastal Insurance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Everest Group and American Coastal Insurance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everest Group	$17.50 billion	0.81	$1.59 billion	$47.29	7.86
American Coastal Insurance	$335.44 million	1.31	$106.84 million	$2.01	4.62

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Everest Group and American Coastal Insurance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everest Group	0	12	5	0	2.29
American Coastal Insurance	0	3	1	0	2.25

Everest Group currently has a consensus target price of $409.50, indicating a potential upside of 10.23%. American Coastal Insurance has a consensus target price of $13.00, indicating a potential upside of 39.95%. Given American Coastal Insurance’s higher possible upside, analysts clearly believe American Coastal Insurance is more favorable than Everest Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everest Group	11.41%	13.63%	3.37%
American Coastal Insurance	30.31%	27.95%	8.20%

Risk and Volatility

Everest Group has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.46, suggesting that its share price is 146% less volatile than the S&P 500.

Summary

Everest Group beats American Coastal Insurance on 8 of the 14 factors compared between the two stocks.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, 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.