PRA vs HCI

For growth investors, HCI Group, Inc.

(HCI) is the stronger pick with 20. 2% revenue growth year-over-year, versus -2. 7% for ProAssurance Corporation (PRA). HCI Group, Inc. (HCI) offers the better valuation at 6. 2x trailing P/E (9. 3x forward), making it the more compelling value choice. Analysts rate HCI Group, Inc. (HCI) a "Buy" — based on 14 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, HCI Group, Inc.

(HCI) is the cheapest at 6. 2x versus ProAssurance Corporation at 24. 8x. On forward P/E, HCI Group, Inc. is actually cheaper at 9. 3x.

Over the past 5 years, HCI Group, Inc.

(HCI) delivered a total return of +110. 5%, compared to -4. 4% for ProAssurance Corporation (PRA). Over 10 years, the gap is even starker: HCI returned +451. 6% versus PRA's -18. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), ProAssurance Corporation (PRA) is the lower-risk stock at 0.

05β versus HCI Group, Inc. 's 0. 39β — meaning HCI is approximately 713% more volatile than PRA relative to the S&P 500. On balance sheet safety, HCI Group, Inc. (HCI) carries a lower debt/equity ratio of 6% versus 32% for ProAssurance Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), HCI Group, Inc.

(HCI) is pulling ahead at 20. 2% versus -2. 7% for ProAssurance Corporation (PRA). On earnings-per-share growth, the picture is similar: HCI Group, Inc. grew EPS 179. 8% year-over-year, compared to -3. 9% for ProAssurance Corporation. Over a 3-year CAGR, HCI leads at 22. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

HCI Group, Inc.

(HCI) is the more profitable company, earning 33. 2% net margin versus 4. 6% for ProAssurance Corporation — meaning it keeps 33. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HCI leads at 47. 7% versus 6. 6% for PRA. At the gross margin level — before operating expenses — HCI leads at 73. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, HCI Group, Inc.

(HCI) trades at 9. 3x forward P/E versus 21. 8x for ProAssurance Corporation — 12. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HCI: -17. 9% to $126. 50.

In this comparison, HCI (1.

0% yield) pays a dividend. PRA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, HCI Group, Inc.

(HCI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 39), 1. 0% yield, +451. 6% 10Y return). Both have compounded well over 10 years (HCI: +451. 6%, PRA: -18. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PRA is a small-cap quality compounder stock; HCI is a small-cap high-growth stock. HCI pays a dividend while PRA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.