Comparing First Acceptance (OTCMKTS:FACO) & Everest Group (NYSE:EG)

First Acceptance (OTCMKTS:FACO) and Everest Group (NYSE:EG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

0.1% of First Acceptance shares are held by institutional investors. Comparatively, 92.6% of Everest Group shares are held by institutional investors. 9.5% of First Acceptance shares are held by insiders. Comparatively, 1.2% of Everest Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares First Acceptance and Everest Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Acceptance	$560.58 million	0.27	$73.91 million	$2.07	1.88
Everest Group	$14.59 billion	1.11	$2.52 billion	$67.29	5.55

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

Volatility and Risk

First Acceptance has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Everest Group has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Acceptance	0	0	0	0	N/A
Everest Group	0	3	4	1	2.75

Everest Group has a consensus target price of $437.40, suggesting a potential upside of 17.03%. Given Everest Group’s higher probable upside, analysts clearly believe Everest Group is more favorable than First Acceptance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Acceptance	13.11%	73.36%	15.25%
Everest Group	18.69%	24.86%	6.36%

Summary

Everest Group beats First Acceptance on 11 of the 14 factors compared between the two stocks.

About First Acceptance

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.

About Everest Group

Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. The company operates through two segment, Insurance and Reinsurance. The Reinsurance segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom. The Insurance Operations segment writes property and casualty insurance directly, as well as through brokers, surplus lines, and general agents in the United States, Bermuda, Canada, Europe, South America, Singapore, France, Germany, Spain, Canada, Chile, the United Kingdom, Ireland, and the Netherlands. The company also provides treaty and facultative reinsurance products; admitted and non-admitted insurance products; and accident and health, specialty underwriters, eversports and entertainment, and surety and credit, marine and aviation, as well as structured and property hybrid solutions. In addition, it offers commercial property and casualty insurance products through wholesale and retail brokers, surplus lines brokers, and program administrators. The company was formerly known as Everest Re Group, Ltd. and changed its name to Everest Group, Ltd. in July 2023.Everest Group, Ltd., was founded in 1973 and is headquartered in Hamilton, Bermuda.