ARX vs HCI

For growth investors, HCI Group, Inc.

(HCI) is the stronger pick with 20. 2% revenue growth year-over-year, versus -11. 6% for Accelerant Holdings (ARX). HCI Group, Inc. (HCI) offers the better valuation at 6. 1x trailing P/E (9. 2x forward), making it the more compelling value choice. Analysts rate Accelerant Holdings (ARX) a "Buy" — based on 9 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 forward P/E, HCI Group, Inc.

is actually cheaper at 9. 2x.

Over the past 5 years, HCI Group, Inc.

(HCI) delivered a total return of +105. 3%, compared to -48. 8% for Accelerant Holdings (ARX). Over 10 years, the gap is even starker: HCI returned +434. 8% versus ARX's -50. 2%. 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), HCI Group, Inc.

(HCI) is the lower-risk stock at 0. 38β versus Accelerant Holdings's 0. 38β — meaning ARX is approximately 1% more volatile than HCI relative to the S&P 500. On balance sheet safety, HCI Group, Inc. (HCI) carries a lower debt/equity ratio of 6% versus 17% for Accelerant Holdings — 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 -11. 6% for Accelerant Holdings (ARX). On earnings-per-share growth, the picture is similar: HCI Group, Inc. grew EPS 179. 8% year-over-year, compared to -54. 5% for Accelerant Holdings. Over a 3-year CAGR, ARX leads at 34. 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 -275. 8% for Accelerant Holdings — 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 -255. 8% for ARX. 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. 2x forward P/E versus 19. 4x for Accelerant Holdings — 10. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARX: 22. 4% to $16. 60.

In this comparison, HCI (1.

0% yield) pays a dividend. ARX 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. 38), 1. 0% yield, +434. 8% 10Y return). Both have compounded well over 10 years (HCI: +434. 8%, ARX: -50. 2%), 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: ARX is a small-cap quality compounder stock; HCI is a small-cap high-growth stock. HCI pays a dividend while ARX 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.