Accelerant Holdings (ARX) vs Willis Towers Watson Public Limited Company (WTW)

Accelerant Holdings and Willis Towers Watson Public Limited Company are both Insurance Brokers companies. Willis Towers Watson Public Limited Company is the larger, with a market value of $27.3B against $4.3B — 6.4× the size. Accelerant Holdings has negative trailing earnings, so its P/E is not meaningful; Willis Towers Watson Public Limited Company trades at 18.0×. Accelerant Holdings grew revenue faster over the last twelve months: 54.6% against 3.00%. Willis Towers Watson Public Limited Company has the higher net margin (15.5% vs −119.3%) and the higher return on invested capital (11.1% vs 0.00%). Across the 18 metrics below, Willis Towers Watson Public Limited Company leads on 13 and Accelerant Holdings on 5.

Valuation

Metric ARX WTW Insurance Brokers median
P/E n/m 18.00 25.35
P/S 3.76 2.74 2.10
P/B 5.80 3.56 2.81
Price to free cash flow 2,396.47 35.57 18.44
EV/EBITDA 9.84 12.19 12.36
EV/Sales 2.42 3.22 3.00
Earnings yield (33.67%) 5.55% 2.64%
Free cash flow yield 0.04% 2.81% 2.30%

Profitability

Metric ARX WTW Insurance Brokers median
Gross margin 100.00% 100.00% 42.95%
Operating margin 21.15% 22.23% 15.37%
Net margin (119.27%) 15.49% 8.77%
Free cash flow margin 0.16% 16.72% 3.89%
Return on equity (369.41%) 19.62% 0.00%
Return on assets (16.63%) 5.30% 2.23%
Return on invested capital 0.00% 11.08% 5.27%

Growth

Metric ARX WTW Insurance Brokers median
Revenue growth (TTM) 54.55% 3.00% 7.09%
EPS growth (last fiscal year) (6,630.08%) 1,793.75% —
Revenue growth, 5-year CAGR — 2.42% 9.30%
Net income growth, 5-year CAGR — 10.01% 0.00%

Health

Metric ARX WTW Insurance Brokers median
Debt to equity 0.16 0.84 0.19
Current ratio 1.51 1.68 1.55
Net debt to EBITDA (7.35) 1.20 0.89

Dividend

Metric ARX WTW Insurance Brokers median
Dividend yield — 1.28% 1.36%
Payout ratio — 0.34 0.00

Size

Metric ARX WTW Insurance Brokers median
Market cap 4.29b 27.27b 1.44b

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