Head to Head Review: White Mountains Insurance Group (NYSE:WTM) versus First Acceptance (OTCMKTS:FACO)

Risk & Volatility

White Mountains Insurance Group has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, First Acceptance has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500.

Earnings & Valuation

This table compares White Mountains Insurance Group and First Acceptance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
White Mountains Insurance Group	$2.24 billion	2.08	$230.40 million	$10.85	166.77
First Acceptance	$559.43 million	0.22	$26.29 million	$0.58	5.78

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

Insider & Institutional Ownership

88.7% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 0.1% of First Acceptance shares are owned by institutional investors. 3.2% of White Mountains Insurance Group shares are owned by insiders. Comparatively, 9.5% of First Acceptance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
White Mountains Insurance Group	1.29%	5.01%	2.47%
First Acceptance	4.13%	13.56%	3.32%

Summary

White Mountains Insurance Group beats First Acceptance on 7 of the 11 factors compared between the two stocks.

About White Mountains Insurance Group

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States. The company operates through HG Global/BAM, Ark/WM Outrigger, Kudu, and Other Operations segments. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services. The Ark/WM Outrigger segment offers reinsurance and insurance, including property, marine and energy, accident and health, casualty, and specialty products. The Kudu segment provides capital solutions to boutique asset and wealth managers for generational ownership transfers, management buyouts, acquisitions and growth finances, and legacy partner liquidity, as well as strategic assistance to investees. The Other Operations segment offers insurance solutions to travel industry through broker channel and on a direct-to-consumer basis; and manages separate accounts and pooled investment vehicles for insurance-linked securities sectors, including catastrophe bonds, collateralized reinsurance investments, and industry loss warranties of third-party clients. White Mountains Insurance Group, Ltd. was incorporated in 1980 and is headquartered in Hamilton, Bermuda.

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.