Investors Title (NASDAQ:ITIC) and American Coastal Insurance (NASDAQ:ACIC) Head-To-Head Contrast

American Coastal Insurance (NASDAQ:ACIC) and Investors Title (NASDAQ:ITIC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Insider and Institutional Ownership

22.1% of American Coastal Insurance shares are held by institutional investors. Comparatively, 41.4% of Investors Title shares are held by institutional investors. 49.9% of American Coastal Insurance shares are held by insiders. Comparatively, 26.4% of Investors Title 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 American Coastal Insurance and Investors Title’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Coastal Insurance	25.95%	30.06%	6.84%
Investors Title	12.28%	12.70%	9.71%

Analyst Ratings

This is a summary of current recommendations and price targets for American Coastal Insurance and Investors Title, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Coastal Insurance	0	1	0	0	2.00
Investors Title	0	0	1	0	3.00

Risk & Volatility

American Coastal Insurance has a beta of -0.49, suggesting that its stock price is 149% less volatile than the S&P 500. Comparatively, Investors Title has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares American Coastal Insurance and Investors Title”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Coastal Insurance	$296.66 million	1.91	$75.72 million	$1.71	6.81
Investors Title	$273.87 million	1.89	$31.07 million	$19.01	14.41

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

Summary

Investors Title beats American Coastal Insurance on 7 of the 13 factors compared between the two stocks.

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.

About Investors Title

Investors Title Company engages in the issuance of residential and commercial title insurance for residential, institutional, commercial, and industrial properties. The company underwrites land title insurance for owners and mortgagees as a primary insurer; and assumes the reinsurance of title insurance risks from other title insurance companies. It offers services in connection with tax-deferred exchanges of like-kind property; acts as a qualified intermediary in tax-deferred exchanges of property; coordinates the exchange aspects of the real estate transaction, such as drafting standard exchange documents, holding the exchange funds between the sale of the old property and the purchase of the new property, and accepting the formal identification of the replacement property. In addition, it serves as an exchange accommodation titleholder for accomplishing reverse exchanges when the taxpayers decide to acquire replacement property before selling the relinquished property. Further, the company offers investment management and trust services to individuals, companies, banks, and trusts; and consulting and management services to clients to start and operate a title insurance agency. It issues title insurance policies directly and through a network of agents in 22 states and the District of Columbia, primarily in the eastern half of the United States. Investors Title Company was founded in 1972 and is headquartered in Chapel Hill, North Carolina.