American Coastal Insurance (NASDAQ:ACIC – Get Free Report) and Old Republic International (NYSE:ORI – 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 valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
American Coastal Insurance has a beta of -0.51, meaning that its share price is 151% less volatile than the S&P 500. Comparatively, Old Republic International has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for American Coastal Insurance and Old Republic International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Coastal Insurance | 0 | 3 | 1 | 0 | 2.25 |
| Old Republic International | 0 | 2 | 1 | 0 | 2.33 |
Institutional & Insider Ownership
22.1% of American Coastal Insurance shares are held by institutional investors. Comparatively, 70.9% of Old Republic International shares are held by institutional investors. 49.2% of American Coastal Insurance shares are held by insiders. Comparatively, 1.3% of Old Republic International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares American Coastal Insurance and Old Republic International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Coastal Insurance | 30.31% | 27.95% | 8.20% |
| Old Republic International | 11.71% | 15.41% | 3.10% |
Dividends
American Coastal Insurance pays an annual dividend of $0.50 per share and has a dividend yield of 4.7%. Old Republic International pays an annual dividend of $1.26 per share and has a dividend yield of 3.3%. American Coastal Insurance pays out 24.9% of its earnings in the form of a dividend. Old Republic International pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Old Republic International has increased its dividend for 45 consecutive years. American Coastal Insurance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares American Coastal Insurance and Old Republic International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Coastal Insurance | $330.16 million | 1.51 | $106.84 million | $2.01 | 5.24 |
| Old Republic International | $9.14 billion | 1.01 | $935.40 million | $4.23 | 9.08 |
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.
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 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.
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