ECPG vs PRA vs HCI vs PLMR

For growth investors, Palomar Holdings, Inc.

(PLMR) is the stronger pick with 58. 2% revenue growth year-over-year, versus -2. 7% for ProAssurance Corporation (PRA). HCI Group, Inc. (HCI) offers the better valuation at 6. 1x trailing P/E (8. 9x forward), making it the more compelling value choice. Analysts rate Encore Capital Group, Inc. (ECPG) a "Buy" — based on 15 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. 1x versus ProAssurance Corporation at 24. 9x. On forward P/E, Encore Capital Group, Inc. is actually cheaper at 6. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Palomar Holdings, Inc. wins at 0. 12x versus Encore Capital Group, Inc. 's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, HCI Group, Inc.

(HCI) delivered a total return of +114. 1%, compared to +0. 2% for ProAssurance Corporation (PRA). Over 10 years, the gap is even starker: PLMR returned +496. 9% versus PRA's -18. 6%. 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 Encore Capital Group, Inc. 's 0. 93β — meaning ECPG is approximately 1787% more volatile than PRA relative to the S&P 500. On balance sheet safety, Palomar Holdings, Inc. (PLMR) carries a lower debt/equity ratio of 1% versus 4% for Encore Capital Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Palomar Holdings, Inc.

(PLMR) is pulling ahead at 58. 2% versus -2. 7% for ProAssurance Corporation (PRA). On earnings-per-share growth, the picture is similar: Encore Capital Group, Inc. grew EPS 287. 1% year-over-year, compared to -3. 9% for ProAssurance Corporation. Over a 3-year CAGR, PLMR leads at 38. 9% 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 — PLMR leads at 73. 9%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Palomar Holdings, Inc. (PLMR) is the more undervalued stock at a PEG of 0. 12x versus Encore Capital Group, Inc. 's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Encore Capital Group, Inc. (ECPG) trades at 6. 5x forward P/E versus 21. 7x for ProAssurance Corporation — 15. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ECPG: 1. 3% to $85. 00.

In this comparison, HCI (1.

0% yield) pays a dividend. ECPG, PRA, PLMR do 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%, ECPG: +220. 6%), 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: ECPG is a small-cap high-growth stock; PRA is a small-cap quality compounder stock; HCI is a small-cap high-growth stock; PLMR is a small-cap high-growth stock. HCI pays a dividend while ECPG, PRA, PLMR do 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.