American Coastal Insurance (NASDAQ:ACIC – Get Free Report) and SelectQuote (NYSE:SLQT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.
Insider & Institutional Ownership
22.1% of American Coastal Insurance shares are held by institutional investors. Comparatively, 34.6% of SelectQuote shares are held by institutional investors. 49.2% of American Coastal Insurance shares are held by insiders. Comparatively, 11.6% of SelectQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
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, SelectQuote has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for American Coastal Insurance and SelectQuote, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Coastal Insurance | 0 | 2 | 1 | 1 | 2.75 |
| SelectQuote | 1 | 2 | 0 | 1 | 2.25 |
American Coastal Insurance currently has a consensus price target of $13.00, indicating a potential upside of 18.94%. SelectQuote has a consensus price target of $3.00, indicating a potential upside of 721.92%. Given SelectQuote’s higher possible upside, analysts plainly believe SelectQuote is more favorable than American Coastal Insurance.
Profitability
This table compares American Coastal Insurance and SelectQuote’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% |
| SelectQuote | 3.84% | 19.70% | 5.33% |
Earnings & Valuation
This table compares American Coastal Insurance and SelectQuote”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 | 1.56 | $106.84 million | $2.01 | 5.44 |
| SelectQuote | $1.62 billion | 0.04 | $62.19 million | ($0.08) | -4.56 |
American Coastal Insurance has higher earnings, but lower revenue than SelectQuote. SelectQuote is trading at a lower price-to-earnings ratio than American Coastal Insurance, indicating that it is currently the more affordable of the two stocks.
Summary
American Coastal Insurance beats SelectQuote on 9 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 SelectQuote
SelectQuote, Inc. operates a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance products and healthcare services in the United States. The company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as medicare advantage, medicare supplement, medicare part D, and other ancillary senior health insurance related products, including prescription drugs, dental, vision, and hearing plans; life insurance products, such as term life, final expense, and other ancillary products, including critical illness, accidental death, and juvenile insurance; homeowners, auto, dwelling fire, and other ancillary insurance products; and non-commercial auto and home property, and casualty policies. The company also provides SelectRx, an accredited patient-centered pharmacy home pharmacy, which offers essential prescription medications, OTC medications, customized medication packaging, medication therapy management, and long-term pharmacy care; and population health that helps members understand the benefits available under their health plans, and contracts with insurance carriers. SelectQuote, Inc. was incorporated in 1999 and is headquartered in Overland Park, Kansas.
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