Reviewing Universal Insurance Holdings (UVE) and HCI Group (HCII)

Universal Insurance Holdings (NYSE: UVE) and HCI Group (NASDAQ:HCII) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Universal Insurance Holdings and HCI Group, as reported by MarketBeat.com.

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

Universal Insurance Holdings currently has a consensus price target of $29.00, suggesting a potential upside of 19.59%. Given Universal Insurance Holdings’ higher possible upside, research analysts plainly believe Universal Insurance Holdings is more favorable than HCI Group.

Valuation & Earnings

This table compares Universal Insurance Holdings and HCI Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Universal Insurance Holdings $711.40 million 1.19 $166.43 million $2.81 8.63
HCI Group N/A N/A N/A N/A N/A

Universal Insurance Holdings has higher revenue and earnings than HCI Group.

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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

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

Profitability

This table compares Universal Insurance Holdings and HCI Group’s 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%
HCI Group 14.08% 15.29% 4.84%

Summary

Universal Insurance Holdings beats HCI Group on 9 of the 11 factors compared between the two stocks.

Universal Insurance Holdings Company Profile

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.

HCI Group Company Profile

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.

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