Comparing CNA Financial (NYSE:CNA) and American Coastal Insurance (NASDAQ:ACIC)

CNA Financial (NYSE:CNA) and American Coastal Insurance (NASDAQ:ACIC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Valuation and Earnings

This table compares CNA Financial and American Coastal Insurance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNA Financial	$14.76 billion	0.89	$1.28 billion	$4.47	10.90
American Coastal Insurance	$335.44 million	1.60	$106.84 million	$2.10	5.27

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

Profitability

This table compares CNA Financial and American Coastal Insurance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNA Financial	8.08%	11.57%	1.86%
American Coastal Insurance	31.32%	32.26%	8.91%

Institutional & Insider Ownership

98.4% of CNA Financial shares are held by institutional investors. Comparatively, 22.1% of American Coastal Insurance shares are held by institutional investors. 0.3% of CNA Financial shares are held by insiders. Comparatively, 49.2% of American Coastal Insurance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

CNA Financial has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, American Coastal Insurance has a beta of -0.51, suggesting that its stock price is 151% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for CNA Financial and American Coastal Insurance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNA Financial	1	1	0	0	1.50
American Coastal Insurance	1	1	1	0	2.00

Summary

American Coastal Insurance beats CNA Financial on 7 of the 13 factors compared between the two stocks.

About CNA Financial

CNA Financial Corporation provides commercial property and casualty insurance products in the United States and internationally. It operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. The company offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity and cyber coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. It also provides property, marine, boiler, and machinery coverage insurance products; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, umbrella, and excess and surplus coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term care policies. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

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.