White Mountains Insurance Group (NYSE:WTM) and Universal Insurance (NYSE:UVE) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Volatility and Risk

White Mountains Insurance Group has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Universal Insurance has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500.

Insider and Institutional Ownership

87.8% of White Mountains Insurance Group shares are owned by institutional investors. Comparatively, 73.9% of Universal Insurance shares are owned by institutional investors. 5.1% of White Mountains Insurance Group shares are owned by company insiders. Comparatively, 10.6% of Universal Insurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares White Mountains Insurance Group and Universal Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
White Mountains Insurance Group 3.94% 0.06% 0.05%
Universal Insurance 19.77% 33.17% 10.34%

Earnings & Valuation

This table compares White Mountains Insurance Group and Universal Insurance’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
White Mountains Insurance Group $373.80 million 7.52 $627.20 million ($8.62) -102.50
Universal Insurance $751.92 million 2.09 $106.93 million N/A N/A

White Mountains Insurance Group has higher earnings, but lower revenue than Universal Insurance.

Dividends

White Mountains Insurance Group pays an annual dividend of $1.00 per share and has a dividend yield of 0.1%. Universal Insurance pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. White Mountains Insurance Group pays out -11.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for White Mountains Insurance Group and Universal Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
White Mountains Insurance Group 0 0 0 0 N/A
Universal Insurance 0 1 0 0 2.00

Universal Insurance has a consensus target price of $44.00, suggesting a potential downside of 2.14%. Given Universal Insurance’s higher probable upside, analysts clearly believe Universal Insurance is more favorable than White Mountains Insurance Group.

Summary

Universal Insurance beats White Mountains Insurance Group on 9 of the 13 factors compared between the two stocks.

About White Mountains Insurance Group

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and reinsurance services in the United States. The company operates through HG Global/BAM, MediaAlpha, and Other segments. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, core governmental functions, and existing transportation facilities. The MediaAlpha segment develops transparent platforms for the buying and selling of insurance and other vertical-specific performance media, such as clicks, calls, and leads; This segment's exchange technology, machine learning, and analytical tools facilitates transparent and real-time transactions between advertisers and publishers. The Other segment provides investment management services; online price comparisons of auto insurance and non-insurance products; management services; and reinsures death and living benefit guarantees associated with variable annuities issued in Japan. White Mountains Insurance Group, Ltd. was founded in 1980 and is headquartered in Hamilton, Bermuda.

About Universal Insurance

Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company primarily offers personal residential homeowner's insurance. It also underwrites homeowner's multi-peril insurance; and fire, commercial multi-peril, and other liability lines of business. In addition, the company offers policy and claims administration, and reinsurance intermediary services, as well as operates Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies. It provides its products through a network of independent agents. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was founded in 1990 and is based in Fort Lauderdale, Florida.

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