HCI Group (HCI) vs. United Insurance (UIHC) Head-To-Head Comparison

HCI Group (NYSE: HCI) and United Insurance (NASDAQ:UIHC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares HCI Group and United Insurance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HCI Group $264.45 million 1.10 $29.02 million ($1.89) -15.79
United Insurance $487.12 million 1.46 $5.69 million ($0.80) -20.76

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for HCI Group and United Insurance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HCI Group 0 1 2 0 2.67
United Insurance 0 1 2 1 3.00

HCI Group presently has a consensus target price of $43.33, suggesting a potential upside of 45.17%. United Insurance has a consensus target price of $18.00, suggesting a potential upside of 8.37%. Given HCI Group’s higher possible upside, equities analysts clearly believe HCI Group is more favorable than United Insurance.

Dividends

HCI Group pays an annual dividend of $1.40 per share and has a dividend yield of 4.7%. United Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. HCI Group pays out -74.1% of its earnings in the form of a dividend. United Insurance pays out -30.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Insurance has increased its dividend for 3 consecutive years. HCI Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

75.9% of HCI Group shares are owned by institutional investors. Comparatively, 31.6% of United Insurance shares are owned by institutional investors. 20.4% of HCI Group shares are owned by company insiders. Comparatively, 22.6% of United Insurance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

HCI Group has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, United Insurance has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares HCI Group and United Insurance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HCI Group -5.63% -6.34% -1.75%
United Insurance -4.54% -2.29% -0.58%

Summary

United Insurance beats HCI Group on 10 of the 16 factors compared between the two stocks.

About HCI Group

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.

About United Insurance

United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate. The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.

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