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

Dividends

United Insurance Holdings Corp. pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Atlas Financial Holdings does not pay a dividend. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlas Financial Holdings 1.67% -3.32% -1.03%
United Insurance Holdings Corp. 0.73% 4.99% 1.34%

Risk and Volatility

Atlas Financial Holdings has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, United Insurance Holdings Corp. has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Insider and Institutional Ownership

79.1% of Atlas Financial Holdings shares are held by institutional investors. Comparatively, 29.3% of United Insurance Holdings Corp. shares are held by institutional investors. 12.7% of Atlas Financial Holdings shares are held by insiders. Comparatively, 22.6% of United Insurance Holdings Corp. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Atlas Financial Holdings and United Insurance Holdings Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atlas Financial Holdings $197.16 million 1.23 -$1.70 million $0.23 87.61
United Insurance Holdings Corp. $559.34 million 1.21 $28.75 million $0.02 793.00

United Insurance Holdings Corp. has higher revenue and earnings than Atlas Financial Holdings. Atlas Financial 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Atlas Financial Holdings and United Insurance Holdings Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial Holdings 0 0 3 0 3.00
United Insurance Holdings Corp. 0 1 2 1 3.00

Atlas Financial Holdings presently has a consensus target price of $18.50, suggesting a potential downside of 8.19%. United Insurance Holdings Corp. has a consensus target price of $15.25, suggesting a potential downside of 3.85%. Given United Insurance Holdings Corp.’s higher probable upside, analysts clearly believe United Insurance Holdings Corp. is more favorable than Atlas Financial Holdings.

Summary

United Insurance Holdings Corp. beats Atlas Financial Holdings on 9 of the 16 factors compared between the two stocks.

Atlas Financial Holdings Company Profile

Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.

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.

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