PRA vs HCI vs PLMR vs ACGL vs RLI

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 (9. 2x 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. 1x versus ProAssurance Corporation at 24. 9x. On forward P/E, HCI Group, Inc. is actually cheaper at 9. 2x. 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 RLI Corp. 's 0. 88x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Arch Capital Group Ltd.

(ACGL) delivered a total return of +144. 0%, compared to -3. 2% for ProAssurance Corporation (PRA). Over 10 years, the gap is even starker: PLMR returned +498. 1% versus PRA's -18. 8%. 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), RLI Corp.

(RLI) is the lower-risk stock at -0. 01β versus HCI Group, Inc. 's 0. 39β — meaning HCI is approximately -6715% more volatile than RLI relative to the S&P 500. On balance sheet safety, Palomar Holdings, Inc. (PLMR) carries a lower debt/equity ratio of 1% versus 32% for ProAssurance Corporation — 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: HCI Group, Inc. grew EPS 179. 8% 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 RLI Corp. 's 0. 88x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, HCI Group, Inc. (HCI) trades at 9. 2x forward P/E versus 21. 8x for ProAssurance Corporation — 12. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RLI: 13. 5% to $56. 33.

In this comparison, RLI (5.

3% yield), HCI (1. 0% yield) pay a dividend. PRA, PLMR, ACGL do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, RLI Corp.

(RLI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 01), 5. 3% yield, +105. 0% 10Y return). Both have compounded well over 10 years (RLI: +105. 0%, PRA: -18. 8%), 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; PLMR is a small-cap high-growth stock; ACGL is a mid-cap deep-value stock; RLI is a small-cap deep-value stock. HCI, RLI pay a dividend while PRA, PLMR, ACGL 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.