United Fire Group (UFCS) vs. Endurance Specialty Holdings (ENH) Head to Head Comparison
Endurance Specialty Holdings (NYSE: ENH) and United Fire Group (NASDAQ:UFCS) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
82.7% of Endurance Specialty Holdings shares are held by institutional investors. Comparatively, 58.2% of United Fire Group shares are held by institutional investors. 5.8% of Endurance Specialty Holdings shares are held by company insiders. Comparatively, 5.8% of United Fire Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Endurance Specialty Holdings and United Fire Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Endurance Specialty Holdings||N/A||N/A||N/A||$6.00||15.50|
|United Fire Group||$1.16 billion||1.00||$59.36 million||$1.83||25.40|
United Fire Group has higher revenue and earnings than Endurance Specialty Holdings. Endurance Specialty Holdings is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.
Endurance Specialty Holdings pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. United Fire Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. Endurance Specialty Holdings pays out 25.3% of its earnings in the form of a dividend. United Fire Group pays out 61.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Endurance Specialty Holdings has raised its dividend for 6 consecutive years.
Risk and Volatility
Endurance Specialty Holdings has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, United Fire Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Endurance Specialty Holdings and United Fire Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Endurance Specialty Holdings||0||4||0||0||2.00|
|United Fire Group||0||2||1||0||2.33|
Endurance Specialty Holdings currently has a consensus target price of $93.00, indicating a potential upside of 0.02%. United Fire Group has a consensus target price of $46.33, indicating a potential downside of 0.34%. Given Endurance Specialty Holdings’ higher probable upside, equities research analysts clearly believe Endurance Specialty Holdings is more favorable than United Fire Group.
This table compares Endurance Specialty Holdings and United Fire Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Endurance Specialty Holdings||4.79%||1.62%||0.82%|
|United Fire Group||4.07%||4.33%||1.01%|
United Fire Group beats Endurance Specialty Holdings on 8 of the 14 factors compared between the two stocks.
About Endurance Specialty Holdings
Endurance Specialty Holdings Ltd. is a holding company. The Company, through its operating subsidiaries in Bermuda, the United States and the United Kingdom, focuses on underwriting specialty lines of personal and commercial property, and casualty insurance and reinsurance. It operates through two segments: Insurance and Reinsurance. In the Insurance segment, it writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, it writes catastrophe, property, casualty, professional lines and specialty reinsurance. Its Insurance and Reinsurance segments both include property-related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage or loss of use. In addition, its Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are concerned with the losses caused by injuries to third parties.
About United Fire Group
United Fire Group, Inc., formerly United Fire & Casualty Company, is engaged in the business of writing property and casualty insurance and life insurance and selling annuities. The Company operates in two segments: property and casualty insurance, and life insurance. The Company’s property and casualty insurance segment consists of commercial lines insurance, including surety bonds, personal lines insurance and assumed insurance. Its life insurance segment consists of deferred and immediate annuities, universal life insurance products and traditional life insurance products. Its life insurance segment consists solely of the operations of United Life Insurance Company. On February 1, 2012, the Company completed a holding company reorganization of United Fire Group, Inc., United Fire & Casualty Company and UFC MergeCo, Inc. On March 28, 2011, the Company acquired Mercer Insurance Group, Inc. (Mercer Insurance Group).
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