ACMAT (OTCMKTS:ACMTA) and Assured Guaranty (NYSE:AGO) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
This table compares ACMAT and Assured Guaranty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
91.4% of Assured Guaranty shares are owned by institutional investors. 10.8% of ACMAT shares are owned by insiders. Comparatively, 3.8% of Assured Guaranty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
ACMAT has a beta of -0.23, meaning that its share price is 123% less volatile than the S&P 500. Comparatively, Assured Guaranty has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for ACMAT and Assured Guaranty, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Assured Guaranty has a consensus target price of $51.00, indicating a potential upside of 90.73%. Given Assured Guaranty’s higher possible upside, analysts clearly believe Assured Guaranty is more favorable than ACMAT.
Earnings & Valuation
This table compares ACMAT and Assured Guaranty’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Assured Guaranty||$963.00 million||2.32||$402.00 million||N/A||N/A|
Assured Guaranty has higher revenue and earnings than ACMAT.
Assured Guaranty beats ACMAT on 9 of the 11 factors compared between the two stocks.
ACMAT Corporation, through its subsidiary, ACSTAR Insurance Company, provides surety bonds primarily for construction contractors in the United States. The company offers surety bonds for prime, sub-prime, specialty trade, environmental, asbestos, and lead abatement contractors, as well as for miscellaneous obligations. It also offers miscellaneous surety comprising workers' compensation, supply, subdivision, and license and permit bonds. ACMAT Corporation was founded in 1950 and is based in Farmington, Connecticut.
About Assured Guaranty
Assured Guaranty Ltd., through its subsidiaries, provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. The company operates in two segments, Insurance and Asset Management. It offers financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. The company insures and reinsures various debt obligations, including bonds issued by the United States state, governmental authorities, or municipal governmental authorities; and notes issued to finance infrastructure projects. It also insures and reinsures various types of the U.S. public finance obligations, such as general obligation, tax-backed, municipal utility, transportation, healthcare, higher education, infrastructure, housing revenue, investor-owned utility, renewable energy, and other public finance bonds; non-U.S. public finance obligations comprising regulated utilities, infrastructure finance, sovereign and sub-sovereign, renewable energy bonds, pooled infrastructure, and other public finance obligations; and the U.S. and non-U.S. Structured finance obligations, including residential mortgage-backed securities, insurance securitization obligations, consumer receivables securities, pooled corporate obligations, financial products, and other structured finance securities. In addition, the company provides asset management services comprising investment advisory services, including management of collateralized loan obligations and opportunity funds to outside investors. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. Assured Guaranty Ltd. was founded in 2003 and is headquartered in Hamilton, Bermuda.
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