Contrasting First Acceptance (OTCMKTS:FACO) & MS&AD Insurance Group (OTCMKTS:MSADY)

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

Profitability

This table compares First Acceptance and MS&AD Insurance 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%
MS&AD Insurance Group	5.71%	9.47%	1.32%

Institutional & Insider Ownership

0.1% of First Acceptance shares are owned by institutional investors. Comparatively, 0.0% of MS&AD Insurance Group shares are owned by institutional investors. 9.5% of First Acceptance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for First Acceptance and MS&AD Insurance Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Acceptance	0	0	0	0	N/A
MS&AD Insurance Group	0	0	0	0	N/A

Volatility & Risk

First Acceptance has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, MS&AD Insurance Group has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Acceptance and MS&AD Insurance 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	0.26	$73.91 million	$2.07	1.88
MS&AD Insurance Group	$45.53 billion	0.78	$2.56 billion	$1.58	14.03

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

Summary

First Acceptance beats MS&AD Insurance Group on 6 of the 11 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 MS&AD Insurance Group

MS&AD Insurance Group Holdings, Inc., an insurance holding company, provides insurance and financial services worldwide. The company offers domestic non-life insurance; life insurance; international business; financial services; and provides risk-related services. The company was formerly known as Mitsui Sumitomo Insurance Group Holdings, Inc. and changed its name to MS&AD Insurance Group Holdings, Inc. in April 2010. MS&AD Insurance Group Holdings, Inc. was founded in 1918 and is headquartered in Tokyo, Japan.