NMI (NASDAQ:NMIH – Get Free Report) and American Coastal Insurance (NASDAQ:ACIC – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Profitability
This table compares NMI and American Coastal Insurance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NMI | 53.82% | 15.18% | 10.23% |
| American Coastal Insurance | 31.32% | 32.26% | 8.91% |
Risk and Volatility
NMI has a beta of 0.56, indicating that its share price is 44% 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.
Insider & Institutional Ownership
Earnings & Valuation
This table compares NMI and American Coastal Insurance”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NMI | $706.44 million | 3.98 | $388.93 million | $4.91 | 7.55 |
| American Coastal Insurance | $335.44 million | 1.51 | $106.84 million | $2.10 | 4.98 |
NMI has higher revenue and earnings than American Coastal Insurance. American Coastal Insurance is trading at a lower price-to-earnings ratio than NMI, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for NMI and American Coastal Insurance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NMI | 0 | 1 | 4 | 0 | 2.80 |
| American Coastal Insurance | 1 | 1 | 1 | 0 | 2.00 |
NMI currently has a consensus target price of $44.80, suggesting a potential upside of 20.92%. Given NMI’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NMI is more favorable than American Coastal Insurance.
Summary
NMI beats American Coastal Insurance on 12 of the 14 factors compared between the two stocks.
About NMI
NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services, such as primary and pool insurance; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company was incorporated in 2011 and is headquartered in Emeryville, California.
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.
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