United Insurance Holdings Corp. (NASDAQ: UIHC) and Universal Insurance Holdings (NYSE:UVE) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for United Insurance Holdings Corp. and Universal Insurance Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Insurance Holdings Corp. 0 1 2 1 3.00
Universal Insurance Holdings 0 0 0 0 N/A

United Insurance Holdings Corp. currently has a consensus target price of $15.25, indicating a potential downside of 7.35%. Given United Insurance Holdings Corp.’s higher probable upside, research analysts clearly believe United Insurance Holdings Corp. is more favorable than Universal Insurance Holdings.

Dividends

United Insurance Holdings Corp. pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Universal Insurance Holdings pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. United Insurance Holdings Corp. pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Insurance Holdings pays out 19.9% of its earnings in the form of a dividend. United Insurance Holdings Corp. has increased its dividend for 3 consecutive years. Universal Insurance Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares United Insurance Holdings Corp. and Universal Insurance Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Insurance Holdings Corp. 0.73% 4.99% 1.34%
Universal Insurance Holdings 14.21% 25.85% 8.56%

Valuation and Earnings

This table compares United Insurance Holdings Corp. and Universal Insurance Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Insurance Holdings Corp. $559.34 million 1.23 $19.13 million $0.02 823.00
Universal Insurance Holdings $711.40 million 1.16 $166.43 million $2.81 8.40

Universal Insurance Holdings has higher revenue and earnings than United Insurance Holdings Corp.. Universal Insurance Holdings is trading at a lower price-to-earnings ratio than United Insurance Holdings Corp., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

28.0% of United Insurance Holdings Corp. shares are owned by institutional investors. Comparatively, 77.3% of Universal Insurance Holdings shares are owned by institutional investors. 22.6% of United Insurance Holdings Corp. shares are owned by insiders. Comparatively, 10.5% of Universal Insurance Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

United Insurance Holdings Corp. has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Universal Insurance Holdings has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Summary

Universal Insurance Holdings beats United Insurance Holdings Corp. on 10 of the 17 factors compared between the two stocks.

United Insurance Holdings Corp. Company Profile

United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate. The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.

Universal Insurance Holdings Company Profile

Universal Insurance Holdings, Inc. (UVE) is a private personal residential homeowners insurance company in Florida. The Company performs substantially all aspects of insurance underwriting, policy issuance, general administration, and claims processing and settlement internally. The Company’s subsidiaries include Universal Property & Casualty Insurance Company (UPCIC) and American Platinum Property and Casualty Insurance Company (APPCIC). UPCIC writes homeowners insurance policies in states, including Alabama, Delaware, Florida, Georgia, Hawaii, Indiana, Maryland, Massachusetts, Michigan, Minnesota, North Carolina, Pennsylvania, South Carolina and Virginia. APPCIC writes homeowners and commercial residential insurance policies in Florida. The Company has developed a suite of applications that provide underwriting, policy and claim administration services, including billing, policy maintenance, inspections, refunds, commissions and data analysis.

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