Critical Survey: United Insurance (NASDAQ:UIHC) vs. Enstar Group (NASDAQ:ESGR)

United Insurance (NASDAQ:UIHC) and Enstar Group (NASDAQ:ESGR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

37.4% of United Insurance shares are owned by institutional investors. Comparatively, 71.0% of Enstar Group shares are owned by institutional investors. 52.5% of United Insurance shares are owned by insiders. Comparatively, 9.4% of Enstar Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for United Insurance and Enstar Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Insurance 0 2 0 0 2.00
Enstar Group 0 0 0 0 N/A

United Insurance presently has a consensus price target of $17.50, indicating a potential upside of 21.70%. Given United Insurance’s higher probable upside, equities analysts plainly believe United Insurance is more favorable than Enstar Group.

Dividends

United Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Enstar Group does not pay a dividend. United Insurance pays out 63.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
United Insurance 0.18% 0.49% 0.12%
Enstar Group 16.11% 4.08% 0.89%

Volatility & Risk

United Insurance has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Enstar Group has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares United Insurance and Enstar Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Insurance $723.94 million 0.86 $290,000.00 $0.38 37.84
Enstar Group $823.53 million 4.43 -$150.22 million N/A N/A

United Insurance has higher earnings, but lower revenue than Enstar Group.

Summary

Enstar Group beats United Insurance on 7 of the 12 factors compared between the two stocks.

About United Insurance

United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners, as well as dwelling fire policies. It also provides commercial multi-peril property insurance for residential condominium associations, as well as loss or damage to buildings, inventory, or equipment caused by covered cause of loss, such as fire, wind, hail, water, theft, and vandalism. In addition, the company offers flood, equipment breakdown, and identity theft policies. It markets and distributes its products through a network of independent agencies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas. United Insurance Holdings Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.

About Enstar Group

Enstar Group Limited acquires and manages insurance and reinsurance companies, and portfolios of insurance and reinsurance business in run-off. It operates in three segments: Non-Life Run-Off, Atrium, and StarStone. The Non-Life Run-Off segment engages in the running off property and casualty, and other non-life lines of businesses. It also provides consulting services, including claims inspection, claims validation, reinsurance asset collection, and IT consulting services to the insurance and reinsurance industry. The Atrium segment is involved in underwriting various classes, including marine, aviation, transit, property and casualty binding authorities, reinsurance, accident and health, and non marine direct and facultative. The StarStone segment offers a range of property, casualty, and specialty insurance products to multi-national, and small and middle-market clients. It operates in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and internationally. The company was formerly known as Castlewood Holdings Limited and changed its name to Enstar Group Limited in January 2007. Enstar Group Limited was founded in 2001 and is based in Hamilton, Bermuda.

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