Financial Contrast: Oxbridge Re (NASDAQ:OXBR) and Universal Insurance (NYSE:UVE)

Universal Insurance (NYSE:UVE) and Oxbridge Re (NASDAQ:OXBR) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

66.6% of Universal Insurance shares are held by institutional investors. Comparatively, 5.6% of Oxbridge Re shares are held by institutional investors. 15.0% of Universal Insurance shares are held by insiders. Comparatively, 16.3% of Oxbridge Re shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Universal Insurance and Oxbridge Re”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Insurance	$1.60 billion	0.84	$182.95 million	$8.00	6.07
Oxbridge Re	$2.58 million	2.79	-$2.08 million	($0.01)	-88.30

Universal Insurance has higher revenue and earnings than Oxbridge Re. Oxbridge Re is trading at a lower price-to-earnings ratio than Universal Insurance, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Universal Insurance and Oxbridge Re’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Insurance	13.94%	38.15%	7.63%
Oxbridge Re	-4.29%	-1.63%	-0.72%

Analyst Ratings

This is a breakdown of current recommendations for Universal Insurance and Oxbridge Re, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Insurance	0	1	0	2	3.33
Oxbridge Re	1	1	1	0	2.00

Universal Insurance currently has a consensus target price of $51.00, indicating a potential upside of 4.99%. Oxbridge Re has a consensus target price of $3.00, indicating a potential upside of 239.75%. Given Oxbridge Re’s higher probable upside, analysts plainly believe Oxbridge Re is more favorable than Universal Insurance.

Volatility & Risk

Universal Insurance has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Oxbridge Re has a beta of 2.05, suggesting that its share price is 105% more volatile than the S&P 500.

Summary

Universal Insurance beats Oxbridge Re on 10 of the 15 factors compared between the two stocks.

About Universal Insurance

Universal Insurance Holdings, Inc. is a property and casualty insurance holding company whose subsidiaries provide coverage primarily for residential properties. Its products include homeowners, renters, condominium, dwelling fire and other property insurance. The company conducts business through insurance and distribution subsidiaries, serving customers in Florida and other U.S. states. Its operations include underwriting, policy distribution, claims handling and risk management, with products generally sold through independent agents.

About Oxbridge Re

Oxbridge Re Holdings Limited is a specialty reinsurance holding company listed on the Nasdaq Capital Market under the symbol OXBR. The company conducts its reinsurance activities primarily through Oxbridge Reinsurance Limited, a Bermuda-based subsidiary, and focuses on providing collateralized property catastrophe reinsurance. Its coverage is designed to protect insurance companies against losses from major natural-catastrophe events, including hurricanes and other severe weather-related disasters.