Accelerant Holdings (ARX) vs Marsh (MRSH)

Accelerant Holdings and Marsh are both Insurance Brokers companies. Marsh is the larger, with a market value of $81.1B against $4.3B — 18.9× the size. Accelerant Holdings has negative trailing earnings, so its P/E is not meaningful; Marsh trades at 20.8×. Accelerant Holdings grew revenue faster over the last twelve months: 54.6% against 8.33%. Marsh has the higher net margin (14.2% vs −119.3%) and the higher return on invested capital (18.5% vs 0.00%). Across the 18 metrics below, Marsh leads on 12 and Accelerant Holdings on 6.

Valuation

Metric ARX MRSH Insurance Brokers median
P/E n/m 20.82 25.35
P/S 3.76 2.94 2.10
P/B 5.80 5.32 2.81
Price to free cash flow 2,396.47 17.23 18.44
EV/EBITDA 9.84 12.54 12.36
EV/Sales 2.42 3.12 3.00
Earnings yield (33.67%) 4.80% 2.64%
Free cash flow yield 0.04% 5.80% 2.30%

Profitability

Metric ARX MRSH Insurance Brokers median
Gross margin 100.00% 100.00% 42.95%
Operating margin 21.15% 21.62% 15.37%
Net margin (119.27%) 14.24% 8.77%
Free cash flow margin 0.16% 17.06% 3.89%
Return on equity (369.41%) 25.34% 0.00%
Return on assets (16.63%) 6.73% 2.23%
Return on invested capital 0.00% 18.49% 5.27%

Growth

Metric ARX MRSH Insurance Brokers median
Revenue growth (TTM) 54.55% 8.33% 7.09%
EPS growth (last fiscal year) (6,630.08%) 3.06% —
Revenue growth, 5-year CAGR — 9.39% 9.30%
Net income growth, 5-year CAGR — 15.59% 0.00%

Health

Metric ARX MRSH Insurance Brokers median
Debt to equity 0.16 1.22 0.19
Current ratio 1.51 1.14 1.55
Net debt to EBITDA (7.35) 0.58 0.89

Dividend

Metric ARX MRSH Insurance Brokers median
Dividend yield — 1.52% 1.36%
Payout ratio — 0.36 0.00

Size

Metric ARX MRSH Insurance Brokers median
Market cap 4.29b 81.09b 1.44b

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