Mercury General (NYSE:MCY – Get Rating) and First Acceptance (OTCMKTS:FACO – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Profitability
This table compares Mercury General and First Acceptance's net margins, return on equity and return on assets.
Get Mercury General alerts:| Net Margins | Return on Equity | Return on Assets | |
| Mercury General | -10.52% | -2.01% | -0.59% |
| First Acceptance | -4.58% | -14.28% | -3.90% |
Volatility & Risk
Mercury General has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, First Acceptance has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Mercury General and First Acceptance, as reported by MarketBeat.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercury General | 0 | 0 | 0 | 0 | N/A |
| First Acceptance | 0 | 0 | 0 | 0 | N/A |
Insider and Institutional Ownership
40.1% of Mercury General shares are held by institutional investors. Comparatively, 0.1% of First Acceptance shares are held by institutional investors. 35.5% of Mercury General shares are held by insiders. Comparatively, 9.5% of First Acceptance shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Mercury General and First Acceptance's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mercury General | $3.99 billion | 0.46 | $247.94 million | ($6.79) | -4.85 |
| First Acceptance | $285.25 million | 0.21 | -$1.23 million | ($0.33) | -4.75 |
Mercury General has higher revenue and earnings than First Acceptance. Mercury General is trading at a lower price-to-earnings ratio than First Acceptance, indicating that it is currently the more affordable of the two stocks.
Summary
Mercury General beats First Acceptance on 8 of the 11 factors compared between the two stocks.
About Mercury General
(Get Rating)
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. The company also writes homeowners, commercial automobile, commercial property, mechanical protection, and umbrella insurance products. Its automobile insurance products include collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners insurance products comprise dwelling, liability, personal property, fire, and other hazards. The company sells its policies through a network of independent agents and insurance agencies, as well as directly through internet sales portals in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Mercury General Corporation was founded in 1961 and is headquartered in Los Angeles, California.
About First Acceptance
(Get Rating)
First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance policies to individuals based on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment preference, failure to maintain continuous insurance coverage, or driving record. The company also underwrites auto and motorcycle insurance products; and renters, homeowners, commercial, pet, life, travel, outdoor vehicle, and hospital indemnity insurance products. In addition, it provides TeleMed, a subscription service that offers access to doctor for consulting, diagnosing, and prescribing medication for non-emergency illness. The company primarily distributes its products through its retail locations, as well as through call center and internet. As of December 31, 2021, it leased and operated 338 retail locations, and a call center. First Acceptance Corporation was founded in 1969 and is headquartered in Nashville, Tennessee.
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