WTM vs HCI

For growth investors, HCI Group, Inc.

(HCI) is the stronger pick with 20. 2% revenue growth year-over-year, versus 15. 0% for White Mountains Insurance Group, Ltd. (WTM). White Mountains Insurance Group, Ltd. (WTM) offers the better valuation at 4. 9x trailing P/E (18. 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, White Mountains Insurance Group, Ltd.

(WTM) is the cheapest at 4. 9x versus HCI Group, Inc. at 6. 1x. On forward P/E, HCI Group, Inc. is actually cheaper at 9. 2x — 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: HCI Group, Inc. wins at 0. 19x versus White Mountains Insurance Group, Ltd. 's 1. 34x — 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 +105. 3%, compared to +69. 7% for White Mountains Insurance Group, Ltd. (WTM). Over 10 years, the gap is even starker: HCI returned +436. 8% versus WTM's +156. 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), HCI Group, Inc.

(HCI) is the lower-risk stock at 0. 39β versus White Mountains Insurance Group, Ltd. 's 0. 40β — meaning WTM is approximately 2% 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 13% for White Mountains Insurance Group, Ltd. — 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 15. 0% for White Mountains Insurance Group, Ltd. (WTM). On earnings-per-share growth, the picture is similar: White Mountains Insurance Group, Ltd. grew EPS 379. 1% year-over-year, compared to 179. 8% for HCI Group, Inc.. Over a 3-year CAGR, WTM leads at 32. 7% 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.

White Mountains Insurance Group, Ltd.

(WTM) is the more profitable company, earning 40. 9% net margin versus 33. 2% for HCI Group, Inc. — meaning it keeps 40. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WTM leads at 49. 1% versus 47. 7% for HCI. 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.

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, HCI Group, Inc. (HCI) is the more undervalued stock at a PEG of 0. 19x versus White Mountains Insurance Group, Ltd. 's 1. 34x. 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 18. 2x for White Mountains Insurance Group, Ltd. — 9. 0x cheaper on a one-year earnings basis.

In this comparison, HCI (1.

0% yield) pays a dividend. WTM 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, +436. 8% 10Y return). Both have compounded well over 10 years (HCI: +436. 8%, WTM: +156. 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: WTM is a small-cap deep-value stock; HCI is a small-cap high-growth stock. HCI pays a dividend while WTM 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.