Universal Insurance (UVE) vs. Heritage Insurance (HRTG) Financial Review
Universal Insurance (NYSE: UVE) and Heritage Insurance (NYSE:HRTG) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Universal Insurance and Heritage Insurance’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Insurance||$685.29 million||1.49||$99.41 million||$2.34||12.67|
|Heritage Insurance||$438.96 million||1.03||$33.86 million||$0.01||1,707.71|
Universal Insurance pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. Heritage Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Universal Insurance pays out 23.9% of its earnings in the form of a dividend. Heritage Insurance pays out 2,402.4% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Universal Insurance and Heritage Insurance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
78.2% of Universal Insurance shares are held by institutional investors. Comparatively, 84.1% of Heritage Insurance shares are held by institutional investors. 10.5% of Universal Insurance shares are held by company insiders. Comparatively, 16.1% of Heritage Insurance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Universal Insurance has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Heritage Insurance has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Universal Insurance and Heritage Insurance, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Universal Insurance currently has a consensus price target of $32.00, indicating a potential upside of 7.93%. Heritage Insurance has a consensus price target of $18.50, indicating a potential upside of 8.44%. Given Heritage Insurance’s higher probable upside, analysts plainly believe Heritage Insurance is more favorable than Universal Insurance.
Universal Insurance beats Heritage Insurance on 11 of the 16 factors compared between the two stocks.
About Universal Insurance
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 Heritage Insurance
Heritage Insurance Holdings, Inc. (Heritage Insurance) is a property and casualty insurance holding company. The Company provides personal and commercial residential insurance. Through its subsidiary, Heritage Property & Casualty Insurance Company (Heritage P&C), it provides personal residential insurance for single-family homeowners and condominium owners, rental property insurance and commercial residential insurance in the state of Florida and North Carolina. The Company is vertically integrated and controls or manages all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The Company’s primary products are personal and commercial residential insurance, which it offers only in Florida. As of December 31, 2016, it marketed and wrote personal lines voluntary policies through a network of approximately 1,900 independent agents. It had 150,998 voluntary personal residential policies as of December 31, 2016.
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