Universal Insurance Holdings (NYSE: UVE) and Montpelier Re Holdings (NYSE:MRH) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Earnings and Valuation

This table compares Universal Insurance Holdings and Montpelier Re Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Insurance Holdings $711.40 million 1.17 $166.43 million $2.81 8.52
Montpelier Re Holdings N/A N/A N/A N/A N/A

Universal Insurance Holdings has higher revenue and earnings than Montpelier Re Holdings.

Dividends

Universal Insurance Holdings pays an annual dividend of $0.56 per share and has a dividend yield of 2.3%. Montpelier Re Holdings does not pay a dividend. Universal Insurance Holdings pays out 19.9% of its earnings in the form of a dividend. Universal Insurance Holdings has increased its dividend for 3 consecutive years and Montpelier Re Holdings has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Universal Insurance Holdings and Montpelier Re Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Insurance Holdings 0 0 1 0 3.00
Montpelier Re Holdings 0 0 0 0 N/A

Universal Insurance Holdings presently has a consensus price target of $29.00, indicating a potential upside of 21.09%. Given Universal Insurance Holdings’ higher possible upside, analysts clearly believe Universal Insurance Holdings is more favorable than Montpelier Re Holdings.

Insider & Institutional Ownership

73.3% of Universal Insurance Holdings shares are owned by institutional investors. 10.5% of Universal Insurance Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Universal Insurance Holdings 14.21% 25.85% 8.56%
Montpelier Re Holdings 35.71% 13.24% 6.70%

Summary

Universal Insurance Holdings beats Montpelier Re Holdings on 8 of the 11 factors compared between the two stocks.

About Universal Insurance Holdings

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.

About Montpelier Re Holdings

Montpelier RE Holdings Ltd. is a holding company. The Company provides customized insurance and reinsurance solutions to the global market. Through its affiliates in Bermuda, it provides institutional and retail investors with direct access to the global property reinsurance market. It operates in three segments: Montpelier Bermuda, which consists of the assets and operations of Montpelier Reinsurance Ltd., which is its wholly owned operating subsidiary based in Pembroke, Bermuda and is registered as a Bermuda Class four insurer; Montpelier at Lloyd’s, which consists of the assets and operations of Montpelier Syndicate 5151, Montpelier Capital Limited, Montpelier at Lloyd’s Limited, Montpelier Underwriting Services Limited and Montpelier Underwriting Inc., and Collateralized Reinsurance, which is marketed under the name Blue Capital. Blue Capital is an asset management platform offering property catastrophe reinsurance-linked investment products to institutional and retail investors.

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