First Acceptance (OTCMKTS:FACO) & HCI Group (NYSE:HCI) Head-To-Head Contrast

HCI Group (NYSE:HCIGet Free Report) and First Acceptance (OTCMKTS:FACOGet Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HCI Group and First Acceptance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCI Group 0 0 4 0 3.00
First Acceptance 0 0 0 0 N/A

HCI Group presently has a consensus target price of $112.00, suggesting a potential downside of 4.49%. Given HCI Group’s higher probable upside, analysts clearly believe HCI Group is more favorable than First Acceptance.

Volatility & Risk

HCI Group has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, First Acceptance has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Institutional & Insider Ownership

65.8% of HCI Group shares are held by institutional investors. Comparatively, 0.1% of First Acceptance shares are held by institutional investors. 25.3% of HCI Group shares are held by insiders. Comparatively, 9.5% of First Acceptance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares HCI Group and First Acceptance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCI Group 14.35% 36.40% 4.64%
First Acceptance 13.19% 83.33% 15.85%

Earnings and Valuation

This table compares HCI Group and First Acceptance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HCI Group $550.01 million 2.13 $79.03 million $7.56 15.51
First Acceptance $560.58 million 0.18 $73.91 million $1.92 1.39

HCI Group has higher earnings, but lower revenue than First Acceptance. First Acceptance is trading at a lower price-to-earnings ratio than HCI Group, indicating that it is currently the more affordable of the two stocks.

Summary

HCI Group beats First Acceptance on 10 of the 13 factors compared between the two stocks.

About HCI Group

(Get Free Report)

HCI Group, Inc., together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs. The company also owns and operates waterfront properties and retail shopping centers, and an office building, as well as commercial properties for investment purposes. In addition, it designs and develops web-based applications and products for mobile devices, including SAMS, an online policy administration platform; Harmony, a policy administration platform; ClaimColony, an end-to-end claims management platform; and AtlasViewer, a mapping and data visualization platform. The company was formerly known as Homeowners Choice, Inc. and changed its name to HCI Group, Inc. in May 2013. HCI Group, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

About First Acceptance

(Get Free Report)

First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. The company also underwrites auto and motorcycle insurance products; and renters, homeowners, commercial, pet, life, travel, outdoor vehicle, and hospital indemnity insurance products. In addition, it provides TeleMed, a subscription service that offers access to doctor for consulting, diagnosing, and prescribing medication for non-emergency illness. The company primarily distributes its products through its retail locations, as well as through call center and internet. As of December 31, 2021, it leased and operated 338 retail locations, and a call center. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.

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