Willis Towers Watson Public (NASDAQ:WTW) vs. American Coastal Insurance (NASDAQ:ACIC) Head to Head Contrast

Willis Towers Watson Public (NASDAQ:WTW) and American Coastal Insurance (NASDAQ:ACIC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Willis Towers Watson Public 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
Willis Towers Watson Public	$9.71 billion	2.97	$1.60 billion	$16.26	19.08
American Coastal Insurance	$330.16 million	1.57	$106.84 million	$2.01	5.46

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Willis Towers Watson Public and American Coastal Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Towers Watson Public	0	6	10	0	2.62
American Coastal Insurance	0	3	1	0	2.25

Willis Towers Watson Public presently has a consensus target price of $364.40, indicating a potential upside of 17.43%. American Coastal Insurance has a consensus target price of $13.00, indicating a potential upside of 18.56%. Given American Coastal Insurance’s higher probable upside, analysts plainly believe American Coastal Insurance is more favorable than Willis Towers Watson Public.

Profitability

This table compares Willis Towers Watson Public and American Coastal Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willis Towers Watson Public	15.49%	22.19%	6.00%
American Coastal Insurance	30.31%	27.95%	8.20%

Insider & Institutional Ownership

93.1% of Willis Towers Watson Public shares are held by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are held by institutional investors. 0.4% of Willis Towers Watson Public shares are held by company insiders. Comparatively, 49.2% of American Coastal Insurance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Willis Towers Watson Public has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.51, indicating that its share price is 151% less volatile than the S&P 500.

Dividends

Willis Towers Watson Public pays an annual dividend of $3.84 per share and has a dividend yield of 1.2%. American Coastal Insurance pays an annual dividend of $0.50 per share and has a dividend yield of 4.6%. Willis Towers Watson Public pays out 23.6% of its earnings in the form of a dividend. American Coastal Insurance pays out 24.9% 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. Willis Towers Watson Public has raised its dividend for 8 consecutive years.

Summary

Willis Towers Watson Public beats American Coastal Insurance on 11 of the 17 factors compared between the two stocks.

About Willis Towers Watson Public

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company worldwide. It operates through two segments: Health, Wealth & Career and Risk & Broking. The company offers strategy and design consulting, plan management service and support, broking and administration services for health, wellbeing, and other group benefit program, including medical, dental, disability, life, voluntary benefits and other coverages; actuarial support, plan design, and administrative services for pension and retirement savings plans; retirement consulting services and solutions; and integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services. It also provides advice, data, software, and products to address clients' total rewards and talent issues; and risk advice, insurance brokerage, and consulting services in the areas of property and casualty, affinity, risk and analytics, aerospace, construction, global markets direct & facultative, financial, executive and professional risks, financial solutions, crisis management, surety, marine, and natural resources. In addition, the company offers integrated solutions that consists of investment discretionary management, pension administration, core actuarial, and communication and change management assistance services; and software and technology, risk and capital management, products and product pricing, financial and regulatory reporting, financial and capital modeling, M&A, outsourcing, and business management services. The company was formerly known as Willis Group Holdings Public Limited Company and changed its name to Willis Towers Watson Public Limited Company in January 2016. Willis Towers Watson Public Limited Company was founded in 1828 and is based in London, the United Kingdom.

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.