HCI Group (NASDAQ: HCII) and UNIVERSAL INSURANCE HOLDINGS INC (NYSE:UVE) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

This table compares HCI Group and UNIVERSAL INSURANCE HOLDINGS INC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCI Group 14.08% 15.29% 4.84%
UNIVERSAL INSURANCE HOLDINGS INC 14.21% 25.85% 8.56%

Analyst Ratings

This is a summary of current recommendations and price targets for HCI Group and UNIVERSAL INSURANCE HOLDINGS INC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCI Group 0 0 0 0 N/A
UNIVERSAL INSURANCE HOLDINGS INC 0 0 1 0 3.00

UNIVERSAL INSURANCE HOLDINGS INC has a consensus target price of $29.00, suggesting a potential upside of 22.62%. Given UNIVERSAL INSURANCE HOLDINGS INC’s higher probable upside, analysts plainly believe UNIVERSAL INSURANCE HOLDINGS INC is more favorable than HCI Group.

Dividends

UNIVERSAL INSURANCE HOLDINGS INC pays an annual dividend of $0.56 per share and has a dividend yield of 2.4%. HCI Group does not pay a dividend. UNIVERSAL INSURANCE HOLDINGS INC pays out 19.9% of its earnings in the form of a dividend. UNIVERSAL INSURANCE HOLDINGS INC has increased its dividend for 3 consecutive years.

Institutional and Insider Ownership

73.3% of UNIVERSAL INSURANCE HOLDINGS INC shares are held by institutional investors. 10.5% of UNIVERSAL INSURANCE HOLDINGS INC shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares HCI Group and UNIVERSAL INSURANCE HOLDINGS INC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HCI Group N/A N/A N/A N/A N/A
UNIVERSAL INSURANCE HOLDINGS INC $711.40 million 1.16 $166.43 million $2.81 8.42

UNIVERSAL INSURANCE HOLDINGS INC has higher revenue and earnings than HCI Group.

Summary

UNIVERSAL INSURANCE HOLDINGS INC beats HCI Group on 10 of the 11 factors compared between the two stocks.

About HCI Group

HCI Group, Inc. (HCI) is an insurance holding company. The Company operates through four operating divisions: property and casualty insurance, reinsurance, investment real estate and information technology. Its operations include Insurance Operations and Other Operations. Its Insurance Operations include property and casualty insurance, and reinsurance. The Company, through its subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPCI), provides property and casualty insurance to homeowners, condominium owners and tenants on properties located in Florida. HCPCI also offers flood-endorsed and wind-only policies to new and pre-existing Florida customers. Its Other Operations include information technology (IT) and real estate. The Company’s real estate operations consist of multiple properties it owns and operates.

About UNIVERSAL INSURANCE HOLDINGS INC

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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