Critical Review: United Fire Group (NASDAQ:UFCS) vs. Atlas Financial (OTCMKTS:AFHIF)

United Fire Group (NASDAQ:UFCS) and Atlas Financial (OTCMKTS:AFHIF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

This table compares United Fire Group and Atlas Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Fire Group	9.16%	14.65%	3.51%
Atlas Financial	N/A	N/A	N/A

Institutional and Insider Ownership

62.7% of United Fire Group shares are owned by institutional investors. 6.1% of United Fire Group shares are owned by company insiders. Comparatively, 14.4% of Atlas Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares United Fire Group and Atlas Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Fire Group	$1.39 billion	0.95	$118.19 million	$4.96	10.35
Atlas Financial	N/A	N/A	N/A	($0.78)	N/A

United Fire Group has higher revenue and earnings than Atlas Financial. Atlas Financial is trading at a lower price-to-earnings ratio than United Fire Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for United Fire Group and Atlas Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Fire Group	0	1	3	0	2.75
Atlas Financial	0	0	0	0	0.00

United Fire Group currently has a consensus price target of $51.00, indicating a potential downside of 0.70%. Given Atlas Financial’s higher possible upside, analysts plainly believe Atlas Financial is more favorable than United Fire Group.

Summary

United Fire Group beats Atlas Financial on 8 of the 10 factors compared between the two stocks.

About United Fire Group

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and reinsurance coverage for property and casualty insurance. Its commercial lines include fire and allied lines, other liability, automobile, workers’ compensation, fidelity and surety coverage, and other insurance products; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners, as well as provides assumed reinsurance products. The company sells its products through a network of independent agencies. United Fire Group, Inc. was incorporated in 1946 and is headquartered in Cedar Rapids, Iowa.

About Atlas Financial

Atlas Financial Holdings, Inc., through its subsidiary, Anchor Group Management, Inc., engages in generating, underwriting, and servicing of commercial automobile insurance in the United States. The company's automobile insurance products provide insurance coverage in three areas, including liability, accident benefits, and physical damage. It focuses on the light commercial automobile sector, including taxi cabs, non-emergency paratransit, limousine, livery, and business autos. It distributes its insurance products through a network of independent retail agents. Atlas Financial Holdings, Inc. was founded in 2009 and is headquartered in Schaumburg, Illinois.